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Holt borrowed $80,000 from Andrew and gave him a mortgage on a lot that Holt owned in the city of Savannah. The mortgage was promptly recorded, but the recorder mistakenly listed the debt on the record as $40,000 instead of $80,000. Holt then sought to obtain a loan from Terrell. After examining the county records, which showed a mortgage of only $40,000, Terrell decided to lend Holt the funds he sought and take a junior mortgage. Later Andrew sought to foreclose the first mortgage. Terrell claimed that his junior mortgage gave him priority to proceeds from the foreclosure sale above $40,000. Is he correct? Why or why not?
Aalberts, Robert J.. Real Estate Law (Real Estate Law (Seidel, George)) (Page 313). South-Western College Pub. Kindle Edition.
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