Property – mortgages — accord and satisfaction

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Wisconsin Court of Appeals

Civil

Property – mortgages — accord and satisfaction

This case concerns the effects of a chapter 7 bankruptcy and the doctrine of accord and satisfaction in the context of one residential mortgage securing two different loans. James and Beverly Molitor appeal a circuit court order denying their claims seeking a declaration that the mortgage lien on the residential property was satisfied upon their having tendered to Advantage Community Bank (the Bank) a check for the outstanding balance on one of the loans. They contend that their reaffirmation of that first loan in bankruptcy eliminated the debt under the second loan so that no mortgage lien remained upon payment in full of the debt under the first loan. In addition, they argue that they satisfied the entire debt secured by the mortgage when the Bank accepted and cashed their check, under the doctrine of accord and satisfaction. We disagree and affirm the circuit court’s denial of their claims. Not recommended for publication in the official reports.

2012AP487 Molitor v. Advantage Community Bank

Dist IV, Clark County, Wolf, J., Kloppenburg, J.

Attorneys: For Appellant: Tillisch, Cal R., Wausau; For Respondent: Beasley, Kristin M., Wausau