What is the effect of the full credit bid rule on security property at a foreclosure sale?

It is necessary to keep in mind that the idea that the full credit bid rule represents-that such a bid constitutes an admission as to the genuine value of the security property-is a legal fiction. As the United States Supreme Court has pointed out, bids at foreclosure sales often bear little relationship to the fair market value of security property (BFP v. Resolution Trust Corp. (1994) 511 U.S. 531, 539 ["fair market value presumes market conditions that, by definition, simply do not obtain in the forced-sale context."].) While the fiction serves a useful purpose as between a lender and a borrower, because it is a useful way in which to enforce the policies reflected in the antideficiency statutes, it can be very troublesome when applied in other contexts, as this case shows.