Wintroub v. Nationstar Mortgage, LLC

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The Supreme Court affirmed the district court's order granting a mortgage company's motion for summary judgment, holding that a subordination clause in a land contract for the purchase of a residence effectively subordinated the rights of the purchasers to the rights held by later assignees of the note and deed of trust. The purchasers of the property entered into the land contract with a seller-trust. After the purchasers took possession, the seller-trust signed a promissory note and a deed of trust to a bank for a certain amount of money in order to pay a previously existing mortgage on the property. The note and deed of trust were eventually assigned to the mortgage company. When the seller-trust defaulted on its loan, the purchasers filed suit to enjoin a trustee sale of the property, asserting that his claim to the property was superior to that of the mortgage company. The district court granted summary judgment for the mortgage company. The Supreme Court affirmed, holding that the subordination clause meant that the rights of any existing lenders of the seller-trust would take precedence over the purchasers' rights or interest in the property until the purchasers have paid the contract price in full. View "Wintroub v. Nationstar Mortgage, LLC" on Justia Law