Daniel Sutter v. U.S. National Bank

OPINION

COLE, Circuit Judge.

Appellants U.S. National Bank and Saxon Mortgage Services, Inc., appeal the order of the district court overturning a judgment of the bankruptcy court granting them an equitable mortgage on property owned by Debtors Daniel and Sheryl Sutter. We AFFIRM the judgment of the district court.

I. BACKGROUND

A. The World Wide Mortgage

In September 1994, Daniel and Sheryl Sutter (“the Sutters”) bought a home in Lapeer, Michigan (“the Sutter property”). Beginning sometime in the mid to late 1990s, the Sutters experienced financial difficulties that ultimately resulted in the…