VATACS Group Inc. v. HomeSide Lending Inc.

HomeSide Lending, Inc. sued four defendants American General Finance, Inc., Andjar, Inc., VATACS Group, Inc., and H&I Real Estate, Inc. to establish HomeSide’s superior interest in certain residential property, arguing that an agreement subordinated the defendants’ interests in favor of HomeSide’s security deed on the property. After the trial court entered summary judgment in favor of HomeSide, VATACS and H&I appealed, arguing that their interests were not subordinated to the HomeSide security deed. For the reasons set forth below, we affirm. Summary judgment is proper when there is no genuine issue of material fact and the movant is entitled to judgment as a matter of law. OCGA § 9-11-56 c. A de novo standard of review applies to an appeal from a grant of summary judgment, and we view the evidence, and all reasonable conclusions and inferences drawn from it, in the light most favorable to the nonmovant. Matjoulis v. Integon Gen. Ins. Corp .1

So construed, the evidence shows that in 1991, a potential homeowner received a $144,0002 loan to purchase certain residential property and gave a first priority security deed to the lender. In January 1993, the homeowner received a $6,000 loan from American General, which was secured by another security deed on the property. Ten months later in November 1993, American General lent $9,000 to the homeowner to pay off the original debt owed to American General and to give the homeowner additional funds; this new debt was secured by the existing January 1993 security deed and by a newly-executed November 1993 security deed.