United Savings Bank Mutual v. Barnette

Defendants Barnettes appeal from a decree of foreclosure, contending that the trial court erred by 1) finding that their sale on contract of certain mortgaged property triggered the due-on-sale clause contained in the mortgage, 2) allowing automatic enforcement of the due-on-sale clause and 3) striking certain equitable defenses. We affirm.

In October, 1970, plaintiff loaned $74,000 to George Suniga for the purpose of constructing a seven-unit apartment building. Suniga signed a promissory note in which he agreed to repay the loan at an interest rate of 8.75 percent. The loan was to be…