Hampton v. Minton

JONES, Justice.

The main issue in this appeal is whether a payee on a “wraparound note” must continue to pay his own creditor — the holder of a senior lien — after the wraparound maker has defaulted on the wraparound note. Katherine Minton and Marke Hampe (collectively referred to as “Minton”), appel-lees, sued Gary Hampton, appellant, to recover the deficiency remaining on a wraparound note after foreclosure of a senior lien. Following a trial to the court, the district court rendered judgment in favor of Minton for the balance due on the wraparound note, less a credit for the amount bid at…