Got a letter saying that the house I just purchased at a trustee auction is cancelled.

[Yossi Barazani]

I purchased a house in a Trustee sale auction a week ago. Three days later
I received a letter with the funds returned and no other explanation.

I called the trustee office and my understanding is that they decided to cancel the purchase because of an error that has been made on the bank side, probably in the initial bid price.

However, I was the highest bidder. Immediately following the auction the trustee called her office to confirm the sale, which was confirmed at that time.

I wonder if there is any legal action that can be taken in order to force them to acknowledge the sale or compensate for their error.

Any help is greatly appreciated. Thanks in advance!

[Wayne Brooks]

No, you have no recourse. That is one of the many things that can happen. The trustee has an obligation to "do it right". If there was a legal/process error that needed to be corrected, be Thankful they recinded the sale. You would have a mess later.