Ricchi v. American Home Mortgage Servicing, Inc. (In Re Ricchi)

OPINION

JUDITH H. WIZMUR, Chief Judge.

In this adversary proceeding, we are asked to prioritize two competing mortgages, and to enter default judgment against a title insurer. We are also asked to determine the dischargeability of certain claims asserted against the debtors. The facts as presented at trial support the application of equitable subrogation to sub-rogate the refinancing lender’s mortgage to the positions held by the senior mortgagees before their loans were satisfied from the proceeds of the loan. As to the title insurer, because the proceeding does not arise in or under the…