Friday, June 18, 2010

Order Setting Aside Foreclosure Sale Reversed

In Aegis Properties of South Florida, LLC v. Avalon Master Homeowner Association, Inc. (4D09-1358), the Fourth District "reverse an order granting a motion to set aside a foreclosure sale because legally sufficient grounds to undo the sale did not exist."  The court summarized the facts as follows:
A complaint was filed against Huguette Chery to foreclose on a homeowner’s association lien that had attached to certain real property owned by Chery. On September 11, 2008, in the presence of Chery, the trial court entered a default final judgment against her for $3,639.98 plus interest and costs. A public sale of the property was set for January 13, 2009, in the event that Chery did not exercise her equitable right of redemption to cancel the sale by paying the amount owed. Chery did not remit the amount owed and her property proceeded to public sale with Aegis Properties of South Florida, LLC (“Aegis”) being the successful third party bidder in the amount of $4,600.00.
With regard to the law, the court stated that:
Foreclosure sales are reversible if there is a grossly inadequate sales price or irregularities in the sale process. Arlt v. Buchanan, 190 So. 2d 575, 577 (Fla. 1966); see also Action Realty and Invs., Inc. v. Grandison, 930 So. 2d 674, 677 (Fla. 4th DCA 2006); Blue Star Invs., Inc. v. Johnson, 801 So. 2d 218, 219 (Fla. 4th DCA 2001) (“[T]o vacate a foreclosure sale, the trial court must find ‘(1) that the foreclosure sale bid was grossly or startlingly inadequate; and (2) that the inadequacy of the bid resulted from some mistake, fraud or other irregularity in the sale.’” (citations omitted)). Neither of these grounds applies in the instant case.
We therefore reverse the order granting Chery’s emergency motion to set aside foreclosure sale and remand with directions to reinstate the final judgment of foreclosure and certificate of sale and thereafter issue a certificate of title in favor of the bona fide purchaser.
We recognize the harsh result produced by this opinion but the law simply does not authorize the setting aside of the final judgment and certificate of sale under the facts of this case.


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