Winrose Homeowners' Association v. Hale

Summary

The South Carolina Supreme Court reversed the judicial foreclosure sale, holding that the $3,036 winning bid, when measured without adding the senior mortgage (Equity Method), was only about 4.9% of the property’s fair market value and thus shocked the conscience of the court. The Court also held that the Equity Method, not the Debt Method, must be applied when the purchaser does not assume the senior mortgage.