Baskurt v. Beal
Alaska Supreme Court
101 P.3d 1041 (Alaska 2004)
Beal (plaintiff) owned two adjoining parcels secured by two promissory notes under a single trust that treated default on either note as default on both, though the trustee had discretion to sell the parcels individually. After Beal fell behind on one note, Baskurt (defendant), the trustee, held a foreclosure auction. Although Baskurt and her partners were prepared to bid up to $251,000, Baskurt opened bidding at just $26,781.81, one dollar more than Beal owed, and it became the only bid, for both parcels together, even though the trial court found either parcel alone was worth enough to cover the debt and the parcels' combined fair market value was $225,000. Beal sued to set aside the sale, and the trial court did so; Baskurt appealed.
Whether a foreclosure sale may be invalidated when the sale price is so grossly inadequate as to shock the conscience or is coupled with irregularities in the sale process.