First Mortgage Co. of Pennsylvania v. Federal Leasing Corp.

This appeal arises out of a Superior Court denial of the claim of First Mortgage Company of Pennsylvania (FMCP) for mortgage priority over Federal Leasing Corporation (Federal).

I

In 1972, Filippo and Carmela Lionti, husband and wife, paid $135,000 cash for two acres of land in Pennsylvania on Route 202. At the same time, the Liontis owned two houses in Brandywine Hundred, Delaware on which Wilmington Savings Fund Society had first mortgages. In 1976, Mr. Lionti needed $200,000 with which to complete a restaurant that he had begun to build on the Pennsylvania property. FMCP granted the Liontis…