Lenders who plead the remedy of equitable subrogation are scratching their heads after the Court of Appeals’ latest rejection of its use in an Aug. 16 unpublished opinion in Countrywide Home Loans Servicing, LP v. States Resources Corp.
Equitable subrogation allows a lender to leapfrog ahead of an intervening lien holder to assume the position of first lien holder. The leading North Carolina case, the state Supreme Court’s 1931 decision in Wallace v. Benner, is still good law, but whether equitable subrogation remains a remedy to lenders is another question.
Tagged with: Equitable Subrogation
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