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(Advanta). Ms. Yeager was listed as the borrower, and John L.
Babcock5 was listed as a coborrower. Ms. Yeager listed her
address as 614 Sandydale Drive, Nipomo, California 93444 (the
California address). Ms. Yeager and Mr. Babcock signed a note
dated June 21, 1991, in the amount of $75,000. The interest rate
was listed as 13.35 percent. Ms. Yeager obtained this loan to
take advantage of business opportunities related to Voyager.
To secure the $75,000 loan, Advanta filed a Deed of Trust
dated June 21, 1991, with San Luis Obispo County, California,
recording a second mortgage on the property located at the
California address. The deed of trust was signed by Ms. Yeager
and notarized.
Sometime before May 1995, Advanta foreclosed on the property
securing the $75,000 loan. In 1995, Advanta took title to the
property securing the $75,000 loan, sold the property securing
the $75,000 loan, and discharged the principal balance
outstanding on the $75,000 loan.
Advanta issued a Form 1099-C, Cancellation of Debt, for 1995
to Ms. Yeager. The Form 1099-C reported May 17, 1995, as the
5 At the time, Mr. Babcock was Ms. Yeager’s business
manager at Voyager Aircraft, Inc. (Voyager). Ms. Yeager became
involved with Voyager in an attempt to fly an airplane around the
world without stopping or refueling. In December 1986, Richard
G. Rutan and Ms. Yeager accomplished this feat, an aviation
milestone, and as a result the airplane used to accomplish it
hangs in the Smithsonian Air and Space Museum.
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Last modified: May 25, 2011