Midland Savings Bank FSB v. Stewart Group, LC

ANDREASEN, Justice.

Midland Savings Bank FSB (Midland) brought a mortgage foreclosure action against The Stewart Group, LC (Stewart), mortgagor, and several mechanic’s hen claimants, including Des Moines Cashway Lumber Co. (Des Moines Lumber). The issue presented in this appeal is the priority and extent of priority, if any, of Midland’s mortgages over Des Moines Lumber’s mechanics’ hens.

The district court granted Midland’s motion for summary judgment, finding all of Midland’s loan proceeds, except those used to pay cost of purchase, were used to finance work or improvements on the real estate…