Melissa J. De Groff, of Counsel at KGR, is currently featured at the American Bankruptcy Institute (ABI) site. De Groff summarizes a recent case in the Seventh Circuit of the United States Court of Appeals, in which the District Court’s decision was overturned:
A cross-collateralization clause in first priority mortgage put second priority mortgagee on inquiry notice of debt in excess of promissory note specified in first mortgage. Therefore, first mortgage holder entitled to sales proceeds of real property securing both mortgages up to maximum amount secured by first mortgage.
Read more of De Groff’s coverage at the ABI’s Volo (Circuit Court First Responder) here.