General Mortgage Corporation of Iowa v. Campbell

We are asked here to determine whether a real-estate mortgage in excess of the value of the lot described therein, given to secure a construction loan recorded prior to the commencement of any work or the furnishing of any material, has priority over subsequently filed mechanics’ liens. We hold such mortgage has priority.

Plaintiff, holder of the real-estate mortgage, brought this action to foreclose. Mortgagors and all materialmen who had filed mechanics’ liens were made defendants. All defendants except Iowa Lumber Company and Johnson County Ready Mix defaulted. Ottumwa Brick & Tile Company…