Jon Higdon vs. Regions Bank

This appeal concerns a primary lien holder's security interest in certain real property following a foreclosure sale and the obligation of a third-party purchaser of the foreclosed property to remit to the lien holder rents collected after notice of mortgage acceleration. The plaintiff contended that the defendant bank was not entitled to claim priority for any additional indebtedness above the original principal amount stipulated in the Deed of Trust, plus interest and attorney's fees. The plaintiff further alleged that the bank's payment in full of the first mortgage holder's loan constituted a release of this loan and not an assignment. The defendant bank claimed that the plaintiff was liable to it for rent collected by the plaintiff on the property after notice of the mortgage acceleration. The trial court ordered that the defendant bank was not required to release its lien on the property until all of the funds due were paid and that the plaintiff must pay the defendant bank $6,300 in rent payments. We affirm.