2/10/2010
On February 9, 2010, the Court of Appeals published its opinion in Citizens State Bank v. Nakash, No. 286990. Here, a property owner owed a lender $250,000 pursuant to a promissory note secured by a mortgage on real property. Ultimately, the property owner defaulted on the mortgage and the property was placed into foreclosure. At the time of the Sheriff's Sale, the amount due under the mortgage, along with subsequent loans, interest and costs was approximately $474,000. The lender was the only bidder, and bid that exact amount. A subsequent mortgage lender argued that initial lender's mortgage lien was limited to $250,000, and the $474,000 bid created a surplus that they were entitled to as a junior lien holder on the property.
Read more of Jason's entry on the One Court of Justice blog here.