Bankr. No.:
96-40381
Adv. No.:
96-4049
Chapter:
12
Date of Decision:
June 17, 1997
Issue:
Whether bank-mortgagee had a superior secured interest in a manufactured home that became a fixture on the mortgaged real property where the purchase money security lien holder did not make a fixture filing but where the mortgagor-home buyer promised the purchase money lender that the manufactured home would remain personalty?
Ruling:
The bank had the superior interest in the manufactured home. The manufactured home was placed permanently on a foundation and thus became a fixture on the real property mortgaged to the bank. The purchase money lender did not make a fixture filing to protect its lien against the bank's mortgage as required by state law. The mortgagor-home buyer's promise that the manufactured home would remain personalty did not mirror what actually happened and was not the controlling factor in deciding whether the home became a fixture.
Full Bankruptcy Court Decision:
