The applicants sought a determination that their interest in a property had priority over the respondents' interests.
The property owner, Carolyn Lederer, had a first mortgage and a second mortgage with Patricia Bailey.
When the first mortgage defaulted, Bailey, Marchese, and Yung paid it off, adding the amount to the Bailey Mortgage principal as per its standard charge terms.
The applicants, who had a judgment against Lederer from a failed property sale, claimed reliance on a parcel abstract showing only the initial, lower amount of the Bailey Mortgage.
The court dismissed the application, finding that the standard charge terms, which allowed for the addition of paid-out encumbrances to the principal, were deemed part of the Bailey Mortgage by statute, and the applicants had deemed notice of these terms.
The court also clarified that parcel abstracts provide notice of existence, not current monetary value, requiring further inquiry.
