Yaffe v. Heritage Savings & Loan Ass'n

This appeal raises questions concerning the finality of an auction sale, the binding nature of the contract formed by its completion, and whether a trustee, personally conducting a foreclosure sale under a deed of trust, has authority to bind the highest bidder by making a written memorandum which will satisfy the statute of frauds.

I. Facts

Heritage Savings and Loan Association (Heritage) held a note secured by deed of trust on residential property in Richmond. In March 1984, the note being in default, Heritage caused Winfrey T. Wade, a member of the bar, to be appointed as substitute trustee…