Countrywide Home Loans v. Allstate Insurance Co.

HAROLD L. LOWENSTEIN, Judge.

The sole legal issue in this bench tried case is whether a union mortgage clause entitles the mortgagee/lender to insurance proceeds where the insured loss occurred prior to a foreclosure sale at which the mortgagee/lender purchased the property for the full amount of the secured indebtedness.

Allstate Insurance Company (“Allstate”) and Robert C. Washington appeal the judgment entered after a bench trial on stipulated facts in favor of Countrywide Home Loans (“Countrywide”) on a dispute about fire insurance proceeds. Appellants contend the trial court erroneously…