In re Fox

BAUER, Chief Judge.

Appellant-trustee Peter F. Herrell (“Trustee”), appeals the district court’s reversal of a bankruptcy decision excluding the appellees, Union Bank of Blair and Ettrick State Bank (“Banks”), from participating in dividends of the bankruptcy estate as unsecured creditors. The district court allowed the Banks’ claims holding that as mortgagees, the Banks did not relinquish their unsecured deficiency claims by accepting a conveyance of the mortgaged property from the mortgagor-Trustee. We reverse the order of the district court and reaffirm the bankruptcy court’s decision for…