First Palmetto Savings Bank, F.S.B. v. Patel

GOOLSBY, Judge:

In this foreclosure action the master-in-equity set aside the satisfaction of a mortgage held by Bhupendra Patel, restoring it to first priority, and granted foreclosure. First Palmetto Savings Bank appeals. We reverse and remand. 1

FACTUAL/PROCEDURAL BACKGROUND

On May 1, 1989, Bhupendra Patel sold the Sumter Tourist Lodge (the Property) to Nagarbhai K. Patel. 2 In consideration, Nagarbhai executed a promissory note in favor of Bhupendra in the amount of $260,000.00, secured by a wraparound mortgage on the Property. The wrap mortgage was subordinate to a mortgage given by…