First Federal Sav. and Loan Ass'n of South Carolina v. Finn, No. 23123

CourtUnited States State Supreme Court of South Carolina
Writing for the CourtGREGORY
Citation300 S.C. 228,387 S.E.2d 253
Docket NumberNo. 23123
Decision Date11 December 1989
PartiesFIRST FEDERAL SAVINGS AND LOAN ASSOCIATION OF SOUTH CAROLINA, Respondent, v. Timothy G. FINN and Mary G. Finn, Appellants.

Page 253

387 S.E.2d 253
300 S.C. 228
FIRST FEDERAL SAVINGS AND LOAN ASSOCIATION OF SOUTH
CAROLINA, Respondent,
v.
Timothy G. FINN and Mary G. Finn, Appellants.
No. 23123.
Supreme Court of South Carolina.
Submitted June 9, 1989.
Decided Dec. 11, 1989.

[300 S.C. 229] James W. Poag, Jr., West Columbia, for appellants.

W. Cliff Moore, III, and Steven B. Licata, Columbia, for respondent.

GREGORY, Chief Justice:

Respondent commenced this foreclosure action pursuant to a note and mortgage given to secure a construction loan for $129,600. Appellants counterclaimed for damages on various causes of action alleging respondent mishandled disbursement of the loan proceeds to appellants' contractor. Appellants also sought to impose an equitable lien on the property with priority over respondent's mortgage lien. The [300 S.C. 230] trial judge granted respondent summary judgment on this cause of action and this appeal follows. We affirm.

In May 1986, appellants signed a contract to purchase a residential lot for $42,500 and began making payments on it. They then arranged with a contractor to build a home to their specifications. The contractor suggested appellants deed the lot to him in order to obtain construction financing. Accordingly, on June 8, 1986, appellants signed a contract of sale to purchase from the contractor a structure on the lot for a total price of $112,000 and paid the contractor $5,000 as downpayment on this amount. The contract specified appellants would pay off the amount due on the lot before the closing on a construction loan. Appellants acquired title to the lot in July 1986 and on August 18, 1986, deeded the lot to the contractor in fee simple with an added notation that: "This conveyance is made to allow the grantee to obtain construction loan financing in order to comply with the provisions of the contract of sale between the grantee and the grantor herein." The contractor obtained the construction

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loan from respondent secured by a mortgage on the property.

Although the contractor commenced building appellants' home, it eventually became apparent he was not using the construction loan proceeds to complete construction as intended. On April 1, 1987, appellants obtained from the contractor a quitclaim deed to the lot and improvements. This deed specified the property was "subject to all mortgages" outstanding at the time of the conveyance. Because this conveyance by the contractor violated the provisions of the...

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7 practice notes
  • Bank v. Wingard Properties Inc., No. 4846.
    • United States
    • Court of Appeals of South Carolina
    • 22 juin 2011
    ...an expressed or implied intent that the property serve as security for payment of the debt.” First Fed. Sav. & Loan Ass'n of S.C. v. Finn, 300 S.C. 228, 231, 387 S.E.2d 253, 254 (1989). An equitable lien is a “mere floating equity until a judgment or decree subjecting the property to the pa......
  • Eadon v. White, Opinion No. 2008-UP-043 (S.C. App. 1/11/2008), Opinion No. 2008-UP-043.
    • United States
    • Court of Appeals of South Carolina
    • 11 janvier 2008
    ...in the same person, merger occurs and the equitable encumbrance ceases to exist. First Fed. Sav. and Loan Ass'n of South Carolina v. Finn, 300 S.C. 228, 231, 387 S.E.2d 253, 254 (1989); Thompson v. Hudgens, 161 S.C. 450, 452, 159 S.E. 807, 810 (1931). The burden rests on the party opposing ......
  • Eadon v. White, 2008-UP-043
    • United States
    • Court of Appeals of South Carolina
    • 11 janvier 2008
    ...in the same person, merger occurs and the equitable encumbrance ceases to exist. First Fed. Sav. and Loan Ass'n of South Carolina v. Finn, 300 S.C. 228, 231, 387 S.E.2d 253, 254 (1989); Thompson v. Hudgens, 161 S.C. 450, 452, 159 S.E. 807, 810 (1931). The burden rests on the party opposing ......
  • Eadon v. White, 2008-UP-043
    • United States
    • Court of Appeals of South Carolina
    • 11 janvier 2008
    ...in the same person, merger occurs and the equitable encumbrance ceases to exist. First Fed. Sav. and Loan Ass'n of South Carolina v. Finn, 300 S.C. 228, 231, 387 S.E.2d 253, 254 (1989); Thompson v. Hudgens, 161 S.C. 450, 452, 159 S.E. 807, 810 (1931). The burden rests on the party opposing ......
  • Request a trial to view additional results
7 cases
  • Bank v. Wingard Properties Inc., No. 4846.
    • United States
    • Court of Appeals of South Carolina
    • 22 juin 2011
    ...an expressed or implied intent that the property serve as security for payment of the debt.” First Fed. Sav. & Loan Ass'n of S.C. v. Finn, 300 S.C. 228, 231, 387 S.E.2d 253, 254 (1989). An equitable lien is a “mere floating equity until a judgment or decree subjecting the property to the pa......
  • Eadon v. White, Opinion No. 2008-UP-043 (S.C. App. 1/11/2008), Opinion No. 2008-UP-043.
    • United States
    • Court of Appeals of South Carolina
    • 11 janvier 2008
    ...in the same person, merger occurs and the equitable encumbrance ceases to exist. First Fed. Sav. and Loan Ass'n of South Carolina v. Finn, 300 S.C. 228, 231, 387 S.E.2d 253, 254 (1989); Thompson v. Hudgens, 161 S.C. 450, 452, 159 S.E. 807, 810 (1931). The burden rests on the party opposing ......
  • Eadon v. White, 2008-UP-043
    • United States
    • Court of Appeals of South Carolina
    • 11 janvier 2008
    ...in the same person, merger occurs and the equitable encumbrance ceases to exist. First Fed. Sav. and Loan Ass'n of South Carolina v. Finn, 300 S.C. 228, 231, 387 S.E.2d 253, 254 (1989); Thompson v. Hudgens, 161 S.C. 450, 452, 159 S.E. 807, 810 (1931). The burden rests on the party opposing ......
  • Eadon v. White, 2008-UP-043
    • United States
    • Court of Appeals of South Carolina
    • 11 janvier 2008
    ...in the same person, merger occurs and the equitable encumbrance ceases to exist. First Fed. Sav. and Loan Ass'n of South Carolina v. Finn, 300 S.C. 228, 231, 387 S.E.2d 253, 254 (1989); Thompson v. Hudgens, 161 S.C. 450, 452, 159 S.E. 807, 810 (1931). The burden rests on the party opposing ......
  • Request a trial to view additional results

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