Augie Arnold is an experienced and successful carpenter who owned and operated a successful new home framing company. At some points during the boom years he had framing contracts scheduled out 12 to 18 months in the future. The downturn in new home construction left his business shaky. After obtaining a foreclosure judgment, Augie's lender took his home to a sheriff's sale in August of 2011. At the time, comparable homes in his neighborhood were selling for $300,000. His home was once valued over $600,000.
When the sheriff's sale was conducted, the only bidding party was Augie's lender. The total balance of Augie's loan was $475,000. The lender bid a mere $175,000 for Augie's house. Augie's attorneys objected to confirmation on the basis that the sale price was unconscionable. Given that the fair market value of Augie's home was closer to $300,000, and given that the lender's bid would expose Augie to a $300,000 deficiency judgment, the court denied confirmation of the sale, forcing the lender to begin the sale process over from the beginning.