The Supreme Court ruled May 23 that all mortgage holders have to do to bar future court challenges is to sell a foreclosed property at "reasonably equivalent value."

The ruling ends a concern that a lender cannot dispose of a distressed property without concern that the borrowers will later seek to get more for the property by filing for court protection under Chapter 11 of the bankruptcy code and then sell it for a higher price while a debtor is in possession.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.