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the trustee sale was published on August 19, 22, and 28, 1991,
and the auction was held on August 29, 1991. There were no bids,
and petitioner retained his lien interest in the Daniels property
at the date of trial.
The Brown Loans
In July of 1991 petitioner lent Robert and Megan Brown (the
Browns) $9,500 toward the purchase of an interest in a
cooperative located in Washington, D.C. The Browns gave
petitioner a promissory note in the face amount of $10,000
bearing annual interest of 18 percent. Petitioner received a
security interest in the Browns' cooperative. At the time of
petitioner's loan, the cooperative was encumbered by an existing
security interest for an earlier loan of $83,000 made by NCB
Savings Bank (NCB).
On August 1, 1992, petitioner and the Browns signed an
agreement revising the terms of the Browns' note, increasing it
from $10,000 to $15,000 to account for unpaid interest.
Petitioner was notified in October of 1993 and March of 1994
that the Browns were delinquent in making payments on their
obligation to NCB.
On December 10, 1996, Mr. Brown filed a petition in
bankruptcy. Under an Amended Chapter 13 Plan filed January 23,
1997, petitioner was to be paid directly by the debtor, Mr.
Brown, as a secured creditor. On February 17, 1998, NCB held a
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