Graves v. American Acceptance Mortgage Corp.

ON rehearing

Markman, J.

The issue before the Court is whether a mortgage given on a loan and secured by the mortgagor’s property, the proceeds of which are used by the *610mortgagor to pay off a land contract debt and thereby acquire legal title to that property, is a purchase money mortgage and, if so, whether it is therefore entitled to priority over a prior recorded lien on that property. The Court of Appeals held in the affirmative. We hold that the mortgage at issue is not a purchase money mortgage and, thus, we reverse the judgment of the Court of Appeals and reinstate the circuit court’s…