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initiated foreclosure proceedings against the King Trust
Properties. (What became of the other lenders is unknown).
Petron then held a public foreclosure auction at which it was the
highest bidder, with a bid of $850,000. The foreclosure deed
transferred the King Trust Properties to Petron on June 21, 1989.
A little more than a month later, on August 7, 1989, Evelyn
filed a complaint against Petron, claiming that she was a junior
mortgagee and seeking to void Petron's foreclosure sale for
failure to give her proper notice. Her claim to mortgagee status
rested on a $350,000 note and mortgage, both of which indicate
that they were executed contemporaneously with the formation of
the King Trust on May 3, 1988. There is no credible proof that
Evelyn actually transferred $350,000 to the King Trust.
Moreover, the mortgage was not recorded until November 2, 1988.
At trial, she explained this delay, "I never hoped to get the
money back until this opportunity." Evelyn also never attempted
to enforce this obligation. She never received the principal or
interest due her; rather she received "love and affection".
OPINION
Petitioners' testimony is internally inconsistent and
inconsistent with other evidence. Evelyn testified that she had
no real estate interest during 1988 and 1989, but later testified
that she and her son held four properties in trust and that she
was part owner of the King Trust Properties. Furthermore, while
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