§21.6 - Grantor's Postsale Rights

• Jurisdiction: Washington

§21.6 GRANTOR'S POSTSALE RIGHTS

After the sale is final, the aggrieved grantor has four possible available remedies. First, the grantor may bring an action to set aside the sale. Second, the grantor may bring an action against the beneficiary or the trustee for damages. Third, the grantor may defend against an action for unlawful detainer or to quiet title brought by the purchaser of the property. Fourth, the grantor may file bankruptcy within one year after the sale and seek to have the sale set aside.

(1) Action to set aside sale

The grantor may bring an action to set aside the sale. Cox v. Helenius, 103 Wn.2d 383, 693 P.2d 683 (1985). However, absent a procedural irregularity that defeats the trustee's authority to sell the property, a material breach of the trustee's duties resulting in a grossly inadequate purchase price, or other grounds for equitable intervention, the court will not invalidate a nonjudicial foreclosure sale. See Udall v. T.D. Escrow Servs., Inc., 159 Wn.2d 903, 154 P.2d 882 (2007); Cox, 103 Wn.2d 383. There have been a number of cases since Cox and Udall that indicate the court's greater willingness to invalidate trustees' sales of agricultural and residential property based on procedural defects. For instance, procedural irregularities rendering a sale void or voidable include nonjudicially foreclosing on agricultural property, continuing the sale beyond 120 days, a sale conducted by an unlawfully appointed trustee, and a presale bankruptcy filing. See Schroeder v. Excelsior Mgmt. Grp., 177 Wn.2d 94, 297 P.3d 677 (2013) (agricultural property); Albice v. Premier Mortg. Servs. of Wash., 174 Wn.2d 560,276 P.3d 1277 (2012) (continuing sale beyond 120 days); Rucker v. NovaStar Mortg., Inc.,177 Wn. App. 1, 311 P2d 31 (2013) (improperly appointed trustee); Bavand v. OneWest Bank, FSB, 176 Wn.App. 475, 309 P.3d 636 (2013)...