§ 1-18-115 — Rescission of foreclosure sale

(a) A judicial or nonjudicial foreclosure sale may be
rescinded in accordance with this section at any time after the
sale but before the sheriff's deed has been recorded.
(b) If the purchaser at the foreclosure sale was the
foreclosing mortgagee, then the foreclosing mortgagee may
rescind the sale for any reason by executing and recording a
notice of foreclosure sale rescission in the office of the
county clerk of the county where the real estate is located.
(c) If the purchaser at the foreclosure sale was not the
foreclosing mortgagee, then the foreclosing mortgagee and the
certificate holder may agree to rescind the foreclosure sale for
any reason. In order to rescind such a foreclosure sale, the
foreclosing mortgagee shall refund to the certificate holder
either an amount agreed upon by the foreclosing mortgagee and
the certificate holder, or the foreclosure sale bid amount plus
ten percent (10%) interest per annum, calculated daily. In
addition, both the foreclosing mortgagee and the certificate
holder shall execute a notice of foreclosure sale rescission
which shall be recorded in the office of the county clerk of the
county where the real estate is located.
(d) If the purchaser at the foreclosure sale was not the
foreclosing mortgagee, and the certificate holder will not agree
to rescind the foreclosure sale, then the foreclosing mortgagee
may still rescind the sale if the statutory requirements for the
foreclosure sale were not fulfilled or if the foreclosure sale
did not comply with applicable federal or state law. In order to
rescind such a foreclosure sale, the foreclosing mortgagee shall
refund to the certificate holder the purchase price, plus ten
percent (10%) interest per annum, calculated daily, and the
foreclosing mortgagee shall execute and record a notice of
foreclosure sale rescission in the office of the county clerk of
the county where the real estate is located which shall recite
that the foreclosure sale is being rescinded pursuant to this
subsection. The refund of the certificate holder's bid amount,
plus interest, shall be the certificate holder's only remedy
notwithstanding any other provision of law.
(e) Upon recording a notice of foreclosure sale
rescission:
(i) The mortgage and power of sale which are the
subject of the rescinded sale are revived and the mortgage may
be properly foreclosed in a subsequent foreclosure sale in
compliance with applicable law, and all junior liens and rights
of junior lienholders are revived with the same lien priority as
if no foreclosure sale had taken place;
(ii) The certificate of sale is rendered null and
void as if no foreclosure sale had taken place; and
(iii) The mortgagor's indebtedness to the foreclosing
mortgagee and all evidence thereof are revived as of the date of
the foreclosure sale and as if no certificate of sale had been
issued, or as otherwise agreed to by the mortgagor and
mortgagee.