Centreville Car Care, Inc. v. North American Mortgage Co.

In this appeal, we consider whether the chancellor properly applied the equitable doctrine of subrogation to a purchase money deed of trust. In granting subrogation, the chancellor gave the subrogated deed of trust priority over a former second deed of trust to the extent that funds from the loan secured by the subrogated deed of trust were used to extinguish a former first deed of trust.

BACKGROUND

The essential facts are not in dispute and, in large part, were stipulated by the parties. On September 3, 1996, Margaret M. Lynch purchased, as sole owner, a residential property in Fairfax County…