In general, a debtor may rescind a foreclosure sale for any irregularity in its conduct (not in its price), no matter how slight, unless the property was subsequently sold by the purchaser at the foreclosure sale to a bona fide purchaser without notice of the defect. In other words, the purchaser at a foreclosure sale purchases the property at its own risk and subject to the debtor’s right to rescind the sale for any irregularity, but a subsequent transferee without notice of the defect will prevail over the debtor’s right to rescind.
A debtor also has a remedy of wrongful foreclosure, which is a suit for damages. Generally, damages are equal to the difference between the fair market value of the property at the time of the sale and the amount of debt. It may also be possible for the debtor to obtain punitive damages in a case warranting such damages.