Putney v. Dalton (In re Dalton)

MEMORANDUM OPINION

GEORGE L. PROCTOR, Bankruptcy Judge.

This case is before the Court upon cross motions for summary judgment filed by the plaintiff, Scott W. Putney, Trustee (“Trustee”), and the defendants, Don H. Dalton and Nancy M. Dalton. The issue presented is whether the trustee may avoid an unrecorded and allegedly defective mortgage on debtors’ homestead and preserve the benefits for the estate. Upon the evidence presented at the hearing held June 22, 1988, the Court finds in favor of plaintiff.

FACTS

On January 18, 1982, the debtors, James W. Dalton and Mary M. Dalton (“Debtors”),…