Tag: equitable subrogation

4th Circuit: Holliday v. Holliday- Equitable Subrogation of Forged Deed of Trust

Summary:

Mrs. Holliday primarily asserted that the refinance documents, on which Mr. Holliday allegedly forged her signature in granting a Deed of Trust to Cambridge Home Capital (Cambridge), were void ab initio and thus ineffective to transfer an interest in the Hollidays’ property. The Deed of Trust was ultimately assigned to BAC Home Loans. (BAC.)

The Court of Appeals restated that a “deed obtained through fraud, deceit or trickery is voidable as between the parties thereto, but not as to a bona fide purchaser. A forged deed, on the other hand, is void ab initio.” Harding v. Ja Laur Corp., 315 A.2d 132, 135 (Md.… Read More

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N.C. Court of Appeals: In re Falk- Life of Mortgage Lien and Equitable Subrogation in Reformation of Mortgage Priority

Summary:

Quicksilver purchased an apartment complex in 1992, with $4.6 million in financing from the seller and $550,000 from the Charlotte Falk Irrevocable Trust (Falk Trust). Quicksilver later executed a promissory note and Deed of Trust to the Falk Trust, which was recorded on October 28, 1994. Quicksilver defaulted on the note in December of 1994 and, despite several payments in the intervening years, failed to remedy the default. On July 2, 1999, Quicksilver entered into a promissory note and Deed of Trust with Wachovia Bank. The Wachovia Deed was recorded on July 7, 1999, and the Falk Trust granted a subordination agreement, recorded on March 15, 200, moving the Wachovia Deed of Trust into first priority.… Read More

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