Schmitz v. Grudzinski

Ixonia State Bank appeals from an order directing a surplus in a land contract foreclosure to be paid to the Lebanon State Bank. Ixonia asserts that it is entitled to the surplus because its real estate security agreement (RESA) is senior to Lebanon’s interest in the property. We agree, and reverse.

George Grudzinski purchased a farm on land contract in 1977. He was operating the farm with his son, Anthony, on July 7, 1981, when they borrowed about $12,000 from the Ixonia State Bank. On July 31, 1982, George and Anthony borrowed about $5,600 from Ixonia. Both loans were secured by personal…