Patrick v. Shaw

This case arises out of a first mortgage held by Hillary and Randall Shaw on property owned by Philip J. and Marie T. Patrick. The original loan was a “balloon loan,” wherein the monthly payments only covered interest and the principal was due at maturity. The loan provided a right to refinance at an interest rate based on the prevailing market rate, provided certain conditions were met. The Shaws failed to provide the Patricks with 60 days’ notice as required by the loan, and at maturity the Patricks were in default on their property taxes in violation of one of the conditions of…