Guilford v. First American Bank for Savings & Urban Homes (In Re Guilford)

FINDINGS AND RULINGS RE FORECLOSURE SALE

HAROLD LAVIEN, Bankruptcy Judge.

Plaintiff/debtor’s complaint arises from the foreclosure sale of property owned jointly by the debtor and her husband, which they seek to avoid. After a preliminary hearing on the defendant, First American Bank for Savings’ 1 motion to dismiss, the Court ordered an evidentiary hearing. Debtor has alleged that the sale price was substantially below market and the result of collusion — namely, the failure of the Bank to inform the debtors of the sale and the relationship of the buyer and the bank. 2 Accordingly, after…