Opinion ID: 1730429
Heading Depth: 4
Heading Rank: 2

Heading: Between Bird and First Federal

Text: On February 9, 1978, Johnny and Linda mortgaged the 3.458 acre plot to First Federal to secure permanent financing of a construction mortgage. The construction had begun some time before, so the trial court properly gave Bird's lien priority. First Federal argues that it was dealing only with Linda on the mortgage and that, because Linda was sole record titleholder who signed an affidavit that no materialmen's liens were unpaid, First Federal was a bona fide purchaser without notice of Johnny's debts or any fraud. This argument is vitiated, however, by the fact that First Federal's vice president, C. Lanett Davis, testified that Johnny initially contacted him about the loan and continued in communication with him. Furthermore, Johnny signed the loan application as borrower and Linda as co-borrower, and Johnny and Linda both signed the mortgage to First Federal. Under these facts we refrain from disturbing the trial court's award of priority.