Ruidoso State Bank v. Castle

OPINION

WALTERS, Justice.

The question on this appeal is whether a mortgage containing a “dragnet clause” covers preexisting debts to the lender in all cases, whether or not those debts are related to the purpose of the loan for which the mortgage is obtained, to give the lender in a foreclosure proceeding a priority position as to those debts over judgments obtained by other creditors before foreclosure. In the circumstances of this case, we hold it does not and we affirm the trial court. FACTS

Appellant Ruidoso State Bank (Bank) brought a foreclosure suit against Michael Castle and Ruth Castle…