The plaintiffs, who held a second mortgage on a partially completed retirement home, sued the first mortgagee for damages, alleging an improvident sale of the property under a power of sale.
The property was sold at auction for $2,500,000, leaving no proceeds for the plaintiffs.
The court dismissed the action, finding that the actual cost to complete the project was significantly higher than estimated in the appraisal, meaning the property actually sold for more than its true market value.
Furthermore, the court held that the defendant took reasonable precautions to market the property and obtain fair market value.
