• STACEY HAS A 1ST MORTGAGE WITH BB&T, AND A 2ND MORTGAGE WITH WELLS FARGO. BECAUSE BB&T HAS ISSUED A 1ST MORTGAGE, IT'S LIEN AND CLAIM ON STACEY'S PROPERTY IS SUPERIOR TO WELLS FARGO'S LIEN AND CLAIM ON THE PROPERTY. IF STACEY WERE EVER TO DEFAULT ON EITHER MORTGAGE, EITHER LENDER COULD FORECLOSE ON STACEY'S PROPERTY (I.E., TAKE THE PROPERTY AWAY FROM STACEY, AND WIPE OUT ALL INFERIOR LIENS AND CLAIMS ON THE PROPERTY. HOWEVER, FORECLOSURE DOESN'T WIPE OUT ANY SUPERIOR LIENS AND CLAIMS ON THE PROPERTY.). STACEY HAD NO PROBLEM MAKING BOTH HER MORTGAGE PAYMENTS FOR SEVERAL YEARS. HOWEVER, STACEY BECAME VERY ILL AND WAS UNABLE TO WORK (AND, THEREFORE, EARN ANY MONEY). BB&T HAD NO PATIENCE FOR THIS, SO IT BEGAN FORECLOSURE PROCEEDINGS. FEARING THAT ITS LIEN AND CLAIM WOULD BE WIPED OUT, WELLS FARGO AGREED TO MAKE THE PAYMENTS TO BB&T IF STACEY DIDN'T GET HER JOB BACK SOON. BB&T WAS PACIFIED AND STOPPED ITS FORECLOSURE PROCEEDINGS. STACEY COULDN'T MAKE THE PAYMENTS, AND WHEN BB&T TURNED TO WELLS FARGO, WELLS FARGO REFUSED BECAUSE THE CONTRACT BETWEEN BB&T AND WELLS FARGO WASN'T IN WRITING. BB&T SUES WELLS FARGO
• WHAT'S THE LIKELY RESULT, AND WHY?

Answer rating: 100% (QA)

The result in this situation would depend on the legal principles governing contracts and the specif... View the full answer