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Question

Is there a difference between defective foreclosure and wrongful foreclosure? The lender wrongfully foreclosed on land. They purchased the wrongful foreclosure claim from the federal court and extinguished their liability. In the alternative, can an argument be made for a defective foreclosure for not posting the property for sale that eliminated any other bidders at the foreclosure sale who could have bid up the price for surplus funds paid to the owner or its creditors? I believe this is referred to as Chilling the Bid. The Beneficiary and its paid employee, Substitute Trustee, conspired to not post the Trustee’s foreclosure notice to intentionally prevent other bidders. Thanks.

Submitted: 110 days and 8 hours ago.
Category: Real Estate Law
Value: $48
Status: CLOSED
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Optional Information

State/Country relating to question: California

Already Tried:
I have researched wrongful foreclosure and inadequate notice pursuant to the statutes is a wrongful foreclosure. I am trying to give the Trustee an opportunity to bring the land back into the bankruptcy estate after the stay was lifted to foreclose that was plagued with fraud.

Accepted Answer

Hello,

Thank you for your question.

A wrongful foreclosure is a foreclosure it is defective. The wrongful and defective foreclosure are the same.

Collusion to intentionally prevent other bidders would be an intentional tort that would open the door actual and punitive damages.

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Expert: FLAandNYLawyer
Pos. Feedback: 97.8 %
Accepts: 3031
Answered: 11/21/2009

Lawyer

20 years of private practice

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