Crestview, Ltd. v. Foremost Insurance Co.

I respectfully dissent.

In my judgment, this case, divested of frills, presents the question of whether a lender fortified by a “due on sale” provision in the mortgage agreement can enforce that agreement in a subsequent sale solely for the purpose of securing a higher interest rate, such a change of rate not having been provided for in the mortgage contract.

This, apparently, is a case of first impression in Texas; however, a case with similar facts has recently been decided by the New York Court of Appeals, Silver v. Rochester Savings Bank, 73 A.D.2d 81, 424 N.Y.S.2d 945 (1980).

In Silver,…