Peterson Bank v. Langendorf

This is an appeal by Peterson Bank (the bank), from an order entered at the close of its case during trial granting defendants’ motion for a directed finding and dismissing the bank’s mortgage foreclosure action. It is contended here that reversal is required because the trial court decision was based on the erroneous finding that the mortgage lacked consideration.

On December 4, 1979, defendants went to the bank to borrow money to enable them to purchase an insurance company. By signing a mortgage on their house and a note for $100,000 they obtained a line of credit in that amount. The…