Mechanics Lien Priority: Contractor vs. Lender - Part 5: How Much Lender Subrogation
In Mechanics Lien Priority: Contractor vs. Lender - Part 4, we talked about how the Perfected Contractors got priority to a part of foreclosure sale money, known as the added value pitcher, ahead of other rival creditors. Now we're going to talk about the Lender's attempt to get equal priority in front of the added value pitcher of foreclosure sale money.
Lender Seeks Enhancement Priority
In LaSalle Bank, N.A. v. Cypress Creek 1, LP (PDF), the Lender wanted to join the Perfected Contractors at the front of queue that had lined up before the added value pitcher (a/k/a queue Queue #2). Why should the Perfected Contractors share space, and money, with the Lender? According to the Lender:
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