This is the second time this case has appeared before us. In Baxter v. Bayview Loan Servicing, LLC “Baxter I “,1 we reversed the grant of summary judgment to Bayview and remanded the case to the superior court to consider whether Bayview took a security deed on certain real property with constructive notice of Baxter’s mortgage lien on the same property.2 On remand, Baxter filed a motion for summary judgement, which the trial court granted. In a subsequent order, the trial court calculated the value of Baxter’s interest in the subject property using the difference between the purchase price at the foreclosure sale and Bayview’s subrogated first-priority interest. The only issues before us in these cross-appeals are whether the trial court 1 properly determined the priority of the parties’ security interests in the real property and 2 accurately calculated the junior lienholder’s interest in the property following a foreclosure sale. Concluding that it did, we affirm. Our story begins in October 2005, when Ellis Baxter entered into a contract with his ex-wife and son pursuant to which he sold his interest in Fielding Partners, a general partnership consisting previously of only himself and his son.3 The purchase price of the general partnership was secured by certain real property the “Property”.4 When Baxter sued his ex-wife and son alleging breach of the agreement, he filed, on February 17, 2006, a notice of lis pendens, asserting an interest in the Property,5 which was recorded on February 21, 2006.6
On February 27, 2006, the predecessor-in-interest to Bayview Loan Servicing, LLC Bayview and its predecessor, collectively, “Bayview”, closed a loan in favor of Fielding Partners “Fielding Loan”, now comprised solely of Baxter’s ex-wife and son. The Fielding Loan was secured by a deed to secure debt on the Property.7 A portion of the Fielding Loan was then used to satisfy a pre-existing security deed held by LIB Properties, Inc. “LIB”, and Baxter’s ex-wife and son received the remainder.8 Bayview’s title search prior to the closing did not discover Baxter’s lis pendens.
