Cinderella got off easy.
She did. She knew the score. She knew she had to be home by midnight. And she wasn’t. And because she wasn’t home on time, everything fell apart.
But she still got the handsome prince.
It’s not like that with foreclosure. Here’s a real life example.
A bank held a mortgage on real estate owned by a debtor. The debtor defaulted on its payments. The bank foreclosed.
A foreclosure sale was held. A stranger appeared at the auction and bid $2,000 for the property. No other persons appeared at the sale, and no other bids were submitted, so the bidder received the property for a total of $2,000.
As it turns out, a bank representative intended to make a bid at the sale, but this representative arrived late. The sale was finished before the bank representative showed up. The bank’s representative asked the sheriff conducting the sale to invalidate the sale, but the Sheriff refused.
Here’s the rub: the property consisted of 57 acres worth 6.5 million dollars. The guy who bought the property was prepared to pay ten million dollars for it. Instead, he got it for two thousand dollars. The case is Amalgamated Bank v. Superior Court (2007) 149 Cal. App. 4th 1003.
If you were the bank representative, how would you like to take that news back to your boss at the end of the day? Your conversation might go something like this:
Boss: “So – how did the sale go today? Did we get the 57 acres?”
Employee: “Well, there was a small problem.”
Boss: “Really? What kind of a problem?”
Employee: “Well, the line at this donut shop was really long, and . . .”
You see how it goes. The employee gets an opportunity to update their resume. And the interview for their next job might go something like this:
Interviewer: “So, why did you leave your last job?”
Employee: “Well, there were these 57 acres and . . .”
Deadlines are important. Sometimes the law is forgiving. And sometimes it isn’t.