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Action for improvident sale dismissed as mortgagee took reasonable steps to obtain fair market value.
The plaintiff mortgagor defaulted on a development loan, leading the defendant mortgagee to sell the subject property under a power of sale.
The plaintiff brought an action alleging the sale was improvident and that the property was sold at a grossly undervalued price to a pre-selected purchaser.
The court reviewed the marketing efforts, which included obtaining multiple independent appraisals and hiring a specialized commercial real estate broker.
The court found that the defendant took reasonable precautions to obtain the true market value of the property and that the plaintiff failed to prove a higher price could have been obtained.
The action was dismissed with costs fixed at $330,000.
