Reference no: EM132028824

Homer Simpson purchased a parcel of real property in Springfield. The deed for the property was properly recorded and indexed by the county recorder. Subsequently, Simpson borrowed $50,000 from The Springfield Savings Bank, secured by a mortgage that was properly recorded; however, the county recorder did not list the mortgage in its index for recorded documents. Simpson sold the property to Ned Flanders and executed and delivered a deed for the property to them. This deed was properly recorded and indexed at the county recorder’s office. Ned Flanders borrowed money from First Financial Services Corporation, secured by a mortgage on the property that was properly recorded and indexed at the county recorder’s office. Subsequently, Springfield Savings Bank’s mortgage from two years earlier was finally indexed by the county recorder. Three months later, Springfield Savings Bank brought a foreclosure action on the property for Simpsons' default on its loan and claimed that its mortgage had priority over the Flanders’ deed and First Financial’s mortgage. Flanders and First Financial argued that Springfield Savings Bank’s mortgage did not have priority because it was not indexed, and therefore when they conducted their title search, Springfield Savings Bank’s mortgage did not appear in the index. Flanders and First Financial filed motions for summary judgment. Was Springfield Savings Bank’s mortgage on the property properly recorded and indexed and thus gave notice of its existence to subsequent parties? Explain.