Bank of New York Trust Co. v. Gonzalez-Salinas

On November 24, 2009, pursuant to a judgment of foreclosure and sale, a referee conducted an auction sale of certain real property. The successful bidder, REO Equity Management, LLC (hereinafter REO), made a down payment and signed the terms of sale, which provided, among other things, that the sale was subject to certain rights of the mortgagor. A few days later, the mortgagor moved, by order to show cause, to set aside the judgment of foreclosure and sale, and the motion was made returnable on December 21, 2009.

As early as January 11, 2010, REO sought to cancel the sale and recover its down…