UnionBank v. Thrall

This mortgage foreclosure case gave rise to a dispute between two banks, plaintiff UnionBank (Union) and defendant Eureka Savings Bank (Eureka), regarding which bank’s loans had priority. The trial court held that Union had priority, and Eureka appeals. We reverse and remand.

The facts are largely undisputed. The mortgagor, Tracy Thrall, owned several parcels of residential real estate including one in Sandwich, Illinois, and one in Somonauk, Illinois. Thrall borrowed money from both Eureka and Union at various times and secured these loans with separate mortgages on the properties, as follows: