Section 6.30 Foreclosure Sales as Fraudulent Transfers

• Library: Bankruptcy Practice (2007 Ed. + 2015 Cum Supp)

C. (§6.30) Foreclosure Sales as Fraudulent Transfers

A validly constructed real estate foreclosure sale yields “reasonably equivalent value” as a matter of law. BFP v. Resolution Trust Corp., 511 U.S. 531, 535–36 (1994).

Since BFP, several courts have followed the Supreme Court’s reasoning, and a majority have concluded that a foreclosure sale falls within the definition of a transfer. SeeIn re Lindsay, 59 F.3d 942
(9^th Cir. 1995). For example, the Ninth Circuit found that foreclosure sales that comply...