Graves v. American Acceptance Mortgage Corp.

The issue before the Court is whether a purchase money mortgage has precedence over a prior recorded lien on the same property. The Court of Appeals has held that it does. Because this determination conflicts with the priorities established by our race-notice recording statutes, MCL 565.29 and 565.25, we reverse.

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In 1987, a married couple, Eileen Graves and Steve Diaz, purchased, by land contract, a residence at 72 West End in Waterford. In 1994, they were divorced and, pursuant to the judgment of divorce, Diaz was awarded their interest in the property. Graves was to be reimbursed $7,504 by…