Rehearing Recently Sought in South Carolina Appeals Court Case That May Affect the Priority of Refinance Mortgages

The South Carolina Court of Appeals rejected the replacement mortgage doctrine on Nov. 25, 2020 and held a home equity line of credit had priority over a subsequent mortgage that secured refinancing of a mortgage prior in time and senior to the HELOC. In ArrowPointe Federal Credit Union v. Bailey, linked here, the Court of Appeals relied on South Carolina’s statutory race-notice framework to find the home equity line creditor had priority because it recorded its lien before the second mortgage...
By: Nelson Mullins Riley & Scarborough LLP

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