Centennial Savings & Loan Association v. Schmuhl

PIERCE, Judge.

This is a foreclosure action initiated by a creditor, Beneficial Finance Company of Colorado (Beneficial). Debtors, Gerald G. and Glenda L. Schmuhl (Schmuhls), appeal from an order which denied Gerald’s claim of exemption of a mobile home. We reverse.

The Schmuhls executed a promissory note, secured by a second deed of trust on some real estate and their mobile home, which they were occupying as a residence, favoring Beneficial. The note was not executed as part of the consideration for the purchase of the mobile home. Upon default, a senior lienholder filed an action to…