Goldsboro Milling Co. v. Reaves

MEMORANDUM AND RECOMMENDATION

DENSON, United States Magistrate Judge.

May a party secured by á deed of trust on debtor’s Parcel A pay taxes due on debtor’s Parcel B and recoup this expense from the proceeds of sale of foreclosure on Parcel A? That is the interesting question that determines this case.

This is a dispute over disbursement of funds from a sale foreclosing a deed of trust to the Farmers Home Administration, United States Department of Agriculture (FmHA). The individual plaintiff was the owner of the land foreclosed and the corporate plaintiff was a judgment creditor of the…