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personal residence with the understanding that, if other security
interests provided by Jackson (described next) had sufficient
value, Trust Co. would return petitioner's property. Petitioner
had about $100,000 in equity in his home at the time.
Petitioner asked Jackson to provide collateral for the
consolidated loan. Jackson owned a house financed by a first
mortgage from First Federal in Winder, Georgia. The first
mortgage was $202,000. Jackson sold the house to Ken and
Victoria O'Key (the O'Keys) and took back a second mortgage. The
O'Keys agreed to pay Jackson, who would then make payments to
First Federal on the first mortgage and keep the payments on the
second mortgage. Jackson assigned the second mortgage to
petitioner which petitioner gave to Trust Co. Jackson also gave
petitioner the following security interests which petitioner gave
to Trust Co.: (a) A second deed from Neighbors Group, Inc., for
seven tracts of land in Deer Lake Estates; and (b) a second deed
to secure debt (not otherwise described in the record) on a small
strip shopping mall in Statham, Georgia. Petitioner also gave
Trust Co. the fourth or fifth mortgage on the restaurant building
that Jackson had given petitioner in February 1991.
None of the security interests were in foreclosure when they
were assigned to petitioner. Petitioner used them as collateral
for the $80,000 consolidated loan he made in October 1991.
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Last modified: May 25, 2011