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Case Citations [1] (Spring 2025)

handle is hein.ali/retpmrtges0036 and id is 1 raw text is: THE AMERICAN LAW INSTITUTE Spring 2025 Citations PROPERTY 3D (MORTGAGES) CHAPTER 3. MORTGAGOR'S EQUITY OF REDEMPTION AND MORTGAGE SUBSTITUTES § 3.2 The Absolute Deed Intended as Security D.S.C.Bkrtcy.Ct.2024. Cit. in sup. Investor filed a state-court action to evict resident from a property he had purportedly purchased from her decades earlier under a sale contract to help her avoid foreclosure; resident counterclaimed, alleging that she was entitled to the deed to the property under an option agreement that the parties had entered in connection with the sale contract. After investor filed for bankruptcy and removed the action, this court conducted a bench trial and held that the option agreement created an equitable mortgage under Restatement Third of Property: Mortgages § 3.2, rather than an installment land contract, and that resident had satisfied her obligations under the equitable mortgage and was entitled to the property free and clear of any further obligations to debtor. The court pointed to evidence supporting a finding of an equitable mortgage, including the fact that resident only conveyed the property to debtor to secure her debt to him, and that the option agreement, which the parties entered simultaneously with the sale contract, required debtor to reconvey the property to resident after she finished making certain agreed-upon payments to debtor. In re Huggins, 658 B.R. 821, 853. § 3.4 A Contract for Deed Creates a Mortgage D.S.C.Bkrtcy.Ct.2024. Quot. in sup. Investor filed a state-court action to evict resident from a property he had purportedly purchased from her decades earlier under a sale contract to help her avoid foreclosure; resident counterclaimed, alleging that she was entitled to the deed to the property under an option agreement that the parties had entered in connection with the sale contract. After investor filed for bankruptcy and removed the action, this court conducted a bench trial and held that the option agreement created an equitable mortgage, rather than an installment land contract under Restatement Third of Property: Mortgages § 3.4, and that resident had satisfied her obligations under the equitable mortgage and was entitled to the property free and clear of any further obligations to debtor. The court pointed to evidence supporting a finding of an equitable mortgage, including the fact that resident only conveyed the property to debtor to secure her debt to him, and that the option agreement, which the COPYRIGHT 02025 By THE AMERICAN LAW INSTITUTE All rights reserved Printed in the United States of America For earlier citations, see the Appendices, Supplements, or Pocket Parts, if any, that correspond to the subject matter under examination.