CONTINENTAL MORTGAGE v. Quail Run Assocs.

Cureton, Judge:

This case arises out of a mortgage foreclosure action affecting real and personal property located on Hilton Head Island, South Carolina. Continental Mortgage Investors (CMI) seeks a foreclosure judgment based on various alleged defaults under the terms of several notes, mortgages and loan agreements. Quail Run Associates (QRA) counterclaimed alleging a prior breach of the Sound Modification of Loan Agreement (Second Agreement) and seeks actual damages or, alternatively, a set-off against the monies it owes CMI.

The case was heard before a special referee who recommended…