In Re Burnett

MEMORANDUM OF OPINION ON MECHANIC’S LIEN

JOHN C. AKARD, Bankruptcy Judge.

Donald Leroy Burnett and Betty Louise Burnett (Burnetts) filed a motion to avoid a lien held by the Farmers Home Administration (FmHA). The dispute is whether a Development Plan which was expressly incorporated into a deed of trust created a valid contract for a mechanic’s lien on the Burnett’s homestead. 2 Finding that the lien is valid, the court denies the Burnetts’ motion.

FACTS

On April 13, 1973, the Burnetts and FmHA agreed to a Development Plan which provided for the construction of a grain storage barn at a cost of…