Sunset Hollow Properties, LLC v. Bank of Western Massachusetts (In Re Sunset Hollow Properties, LLC)

MEMORANDUM OF DECISION

HENRY J. BOROFF, Bankruptcy Judge.

The parties here can not agree on the appropriate distribution of proceeds realized from the post-petition sale of real property of the debtor, Sunset Hollow Properties, LLC. (“Sunset Hollow”). The heart of the controversy is the extent to which a second mortgage on that property, held by defendants John Kokoski and Paul A.L. Mannheim (“Kokoski” and “Mannheim” separately, “K & M” jointly), is subordinated to a first mortgage, held by the Bank of Western Massachusetts (the “Bank”) — if at all. There are three related motions pending…