Legal Question in Real Estate Law in Massachusetts

Re: Did bank sell house/land as 'commercially reasonable'?

Generally, as long as the bank follows the correct procedures in regards to notice and conducts the sale in good faith, you would not have any claim against the bank. As long as the sale was conducted in a reasonable manner then the sale will not be overturned by a court. The sole fact that the house sold for $60,000 when it may have been appraised for more in the past is not enough to overturn the sale. You would need to show that the bank somehow acted in bad faith (i.e., not properly advertise the sale to prospective bidders, discouraged potential bidders, or put other undue restrictions on the sale). Another factor is whether the bank was the purchaser at auction. If the bank hired an auctioneer who conducted the sale accordingly, then you probably would have no claim.