Microsoft Word - Hulse Dec 10.doc
THE LENDER WITH TWO MORTGAGES ON THE SAME PROPERTY: RISKS AND STRATEGIES Brian D. Hulse∗ Editors’ Synopsis: Lenders commonly hold two mortgages on the same property. Unknown to many lenders, if they foreclose one of the two, a court may deem the debts secured by both to have been satisfied. Courts will apply principles of merger, antideficiency statutes, one-form-of-action rules, and unjust enrichment to prevent the lender from recovering on both notes. This Article examines how such problems may...