YOU BE THE JUDGE
Stuart-Wright Mortgage Inc. was the beneficiary under a deed of trust encumbering real property.
The owners stopped making payments, so the property was foreclosed on. On February 25, 1997, a notice of trustee's sale regarding this property was recorded. The notice listed an outstanding loan balance of $144,656.17, and stated that a trustee's sale was scheduled for March 21, 1997.
The day before the trustee's sale, the loan servicing company sent a letter to the auctioneers. The letter mistakenly set the opening bid at $10,000 instead of $100,000.
"6 Angels" attended the sale after receiving a copy of the notice of sale. The auctioneer at the sale made an opening bid of $10,000 on behalf of Stuart-Wright Mortgage Inc. "6 Angels" tendered a bid for $10,000.01, which was uncontested by any other bidders.
Shortly thereafter, the loan servicing company learned about the winning bid entered by "6 Angels" and instructed the auctioneer to return the funds tendered by "6 Angels" and not to issue a trustee's deed. The auctioneer followed these instructions.
Meridian Trust Deed Service bought the property for $100,000.01 at a second trustee's sale on April 18, 1997.
Does the property rightfully belong to "6 Angels" or Meridian Trust Deed Service?
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