Logan v. Citi Mortg. Inc. (In re Schubert)

Ruling: 
Equitable subrogation applied to prevent avoidance of refinanced first mortgage in favor of successor to original lender.
Procedural posture: 
After plaintiff, the chapter 7 trustee, filed an adversary complaint against defendants, Lenders 1 and 2, to avoid Lender 1's interest as a preference under 11 U.S.C.S. § 547 and to determine the value of Lender 2's secured interest, which arose from its grant of an equity line of credit (LOC) to debtors, the court determined that Lender 1's interest was an avoidable preference but left open the issue of whether equitable subrogation applied.
Issue: 
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Consumer case opionion summary, case decided on October 12,2010, LexisNexis #1110-094