6 Angels, Inc. v. Stuart-Wright Mortgage, Inc

In 6 Angels, Inc. v. Stuart-Wright Mortgage, Inc. (2001) 85 Cal.App.4th 1279, the beneficiary's servicing agent miscalculated the amount owing on the subject property and instructed the trustee to set the opening bid at $ 10,000 (rather than $ 100,000). The trustee opened the bidding at $ 10,000 and 6 Angels bid $ 10,000.01, which was accepted as the high bid. After learning of its mistake, the servicing agent instructed the trustee to return the funds to 6 Angels and to refrain from issuing a trustee's deed. (Id. at p. 1282.) The trial court quieted title in favor of 6 Angels, and the Court of Appeal affirmed. (Id. at p. 1283.) The appellate court in 6 Angels held that the mistake, which was wholly under the control of the beneficiary's agent and the result of its own negligence, fell outside the procedural requirements for foreclosure sales. Because mere inadequacy of the purchase price is not a sufficient ground to set aside a foreclosure sale absent some procedural irregularity that contributed thereto, the court held summary adjudication was properly granted in favor of the purchaser. (6 Angels, supra, 85 Cal.App.4th at pp. 1284-1285.) The agent's mistake in 6 Angels was indisputably "'dehors the sale proceedings.'" (6 Angels, supra, 85 Cal.App.4th at p. 1285.)