FRAUD – Intent; Mortgage Interests 

Posted: 1:00 am Thu, April 15, 2010
By admin
Tags: Fraud

Where creditors who participated in a residential construction project with debtors argued that their debt should be excepted from discharge on the basis of fraud, if the creditors had properly recorded mortgages on the properties, liens to a bank would have been junior to their liens, and an award of damages was improper and the judgment is reversed because the debtors did not intend to deceive the creditors when their alleged misrepresentations were made but were intending to protect both parties’ investments at the time. Judgment is reversed.