Third Circuit Backs US Bank’s Building Sale in Mortgage Default

The Third Circuit signed off on US Bank’s sale of a building to collect on a $51.3 million judgment for a defaulted mortgage, rejecting a real estate firm’s request to cancel the transaction.

B-R Penn Realty lost its bid to quash the sale of a Philadelphia apartment building, arguing that it should have been treated as a court-directed judicial sale under federal law. The US Court of Appeals for the Third Circuit on Thursday upheld a lower court’s ruling in an opinion by Judge Thomas L. Ambro finding the transaction was an execution sale under Pennsylvania state law procedures.

After ...