Unfortunately, many clients come to our office after a foreclosure auction
arising out of a Final Judgment of Foreclosure wishing to save their home.
These clients cannot file a bankruptcy since the sale already took place.
However, not all is lost for the client. Under Fla. Stat. §45.031,
a client has 10 days after the auction to file an Objection to Sale to
stop Certificate of Title from transferring to either a third-party purchaser
or the original lender. In Florida, it used to be where a borrower would
have to show an inadequacy of bid price at auction. This is not the case
any longer. The Florida Supreme Court has issued the following test to
vacate a judicial sale: “On the question of gross inadequacy of
consideration, surprise, accident, or mistake imposed on complainant,
and irregularity in the conduct of the sale, this court is committed to
the doctrine that a judicial sale may on a proper showing made, be vacated
and set aside
on any or all of these grounds.”
Arsali v. Chase Home Fin. LLC, 121 So. 3d 511, 515 (Fla. 2013) (citing
Moran-Alleen Co. v. Brown, 98 Fla. 203, 123 So. 561 (1929).
Emphasis Added. The Florida Supreme Court in
Arsali resolved the conflict of several lower Florida Circuit Courts and held
that inadequacy of bid price is not required to be alleged in an action
to set aside a judicial foreclosure sale.
Ibid at 514. The Court reasoned that trial courts’ use of their equity
powers in resolving disputes pertaining to judicial foreclosure sale set
aside actions are essential and therefore the mere allegation of any single
factor or any specific combination of factors is insufficient for litigations
to prevail in an action seeing to set aside a foreclosure sale.
Ibid at 518. Instead the Court held that litigants can allege one or more adequate
equitable factors and make a proper showing to the trial court that they
exist in order to successfully obtain an order that sets aside a judicial
Ibid, (citing, Ohio Realty Inv. Corp. v. S. Bank of W. Palm Beach, 300 So.2d 679 (Fla.1974)).
If you or anyone you know is facing the possibility of getting forced out
of your home due to a foreclosure auction, please contact our office immediately.
We are very experienced, knowledgeable, and aggressive attorneys and can
quickly analyze your case to possibly file an Objection to Sale with the
hope of vacating the auction to save your home.