BFP v. Resolution Trust Corporation (1993)
- Docket
- 92-1370
- Decided
- 1993-01-01
Summary
Question: Does a property's fair market value determine whether the amount of debt settled by a foreclosure sale is "reasonably equivalent" to the property's worth, as required by U.S.C. Section 548(a)(2)(A)? Conclusion: No. In an opinion by Justice Antonin Scalia, The Court ruled 5-4 that the value received for a property at a foreclosure sale can be reasonable even if it is different from the "fair market value." A foreclosure sale alters market conditions and can lower a property's selling price. If a foreclosure sale is necessary to settle a debt, the price at which the property is sold is reasonable so long as "all the requirements of the State's foreclosure law have been complied with."