Jack Abrams v. Federal Deposit Insurance Corporation

BOGGS, Circuit Judge.

Jack Abrams appeals from a grant of summary judgment to defendant FDIC. The district court held, as a matter of law, that Abrams’s liability to the FDIC as successor in interest to a failed bank with which Abrams had a mortgage was not extinguished until the receipt, in cash, of all proceeds flowing from the sale of all property received in exchange for plaintiffs house. We reverse.

I

Jack Abrams took out a mortgage from Peoples Bank. He later went into arrears on the mortgage. Peoples repossessed the property and then agreed that Abrams would deed the property to the bank…