Murphy v. Financial Development Corp.: Difference between revisions
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*The lender picked out a foreclosure sale date | *The lender picked out a foreclosure sale date | ||
*Soon, Murphy paid the regular monthly payments; nevertheless, he couldn't pay the overdue fees that had accrued since he fell behind on his mortgage payments | *Soon, Murphy paid the regular monthly payments; nevertheless, he couldn't pay the overdue fees that had accrued since he fell behind on his mortgage payments | ||
*The lender pushed the new foreclosure date to a 1 month later; the lender posted | *The lender pushed the new foreclosure date to a 1 month later; the lender posted the foreclosure notice at (1) Murphy's home, (2) the post office, & (3) city hall | ||
*Murphy didn't pay the overdue fees; consequently, the sale proceeded ahead | |||
*The lender's agent was the only bidder who showed up at the foreclosure sale | |||
*The lender's agent placed a winning bid for $27,000; at that time, the home's fair market value was $54,000 | |||
*At that time, Murphy owed $27,000. | |||
*The entire $27,000 from the sale proceeds went to pay off the outstanding mortgage | |||
*After the sale, the lender put the home up for sale for $40,000 | |||
*The next buyer bought the property for $38,000 | |||
* | * | ||
* | * | ||
* | |||
* | |||
|procedural_history=* Murphy sued the lender | |||
* A court master ruled that the lender to exercise good faith & [https://www.quimbee.com/keyterms/due-diligence due diligence] to obtain a fair market price at the [https://www.quimbee.com/keyterms/foreclosure-sale foreclosure sale]. | |||
* Murphy won in the trial court in New Hampshire | |||
* | |||
|issues=Does a lender owe a borrower a duty to use both (1) good faith & (2) due diligence to sell a foreclosed property for a fair price? | |||
|case_text_links={{Infobox Case Brief/Case Text Link | |case_text_links={{Infobox Case Brief/Case Text Link | ||
|link=https://www.quimbee.com/cases/murphy-v-financial-development-corp | |link=https://www.quimbee.com/cases/murphy-v-financial-development-corp | ||
Revision as of 16:26, April 9, 2024
| Murphy v. Financial Development Corp. | |
| Court | New Hampshire Supreme Court |
|---|---|
| Citation | 495 A.2d 1245 |
| Date decided | May 24, 1985 |
Facts
- Financial Development Corporation = defendant = lender
- Murphy = plaintiff = mortgagor who financed his mortgage
- In 1980, the home of Murphy in New Hampshire was appraised for $46,000
- Murphy's refinanced mortgage was assigned to a 2nd lender: Colonial Deposit Company (defendant)
- In 1981, Murphy lost his job
- Murphy missed his mortgage payments
- The lender picked out a foreclosure sale date
- Soon, Murphy paid the regular monthly payments; nevertheless, he couldn't pay the overdue fees that had accrued since he fell behind on his mortgage payments
- The lender pushed the new foreclosure date to a 1 month later; the lender posted the foreclosure notice at (1) Murphy's home, (2) the post office, & (3) city hall
- Murphy didn't pay the overdue fees; consequently, the sale proceeded ahead
- The lender's agent was the only bidder who showed up at the foreclosure sale
- The lender's agent placed a winning bid for $27,000; at that time, the home's fair market value was $54,000
- At that time, Murphy owed $27,000.
- The entire $27,000 from the sale proceeds went to pay off the outstanding mortgage
- After the sale, the lender put the home up for sale for $40,000
- The next buyer bought the property for $38,000
Procedural History
- Murphy sued the lender
- A court master ruled that the lender to exercise good faith & due diligence to obtain a fair market price at the foreclosure sale.
- Murphy won in the trial court in New Hampshire
Issues
Does a lender owe a borrower a duty to use both (1) good faith & (2) due diligence to sell a foreclosed property for a fair price?
Resources
