Buice

Tahoe Vista Inn and Marina (TVIM) owns real property located on the shore of Lake Tahoe; the property is encumbered with several deeds of trust. The Buice Revocable Living Trust (the Trust) purchased a promissory note made by TVIM from Bank of America; the note was secured by the senior deed of trust on TVIM’s real property. As part of the transaction, the Trust made additional advances to TVIM and amended the note and deed of trust, changing the principal amount, the interest rate, and the maturity date. The trial court found these amendments were a substantial modification which caused the deed of trust to lose its priority. The trial court granted a motion for summary adjudication by Lennar Northeast Partners (Lennar), the holder of what had been the second deed of trust on TVIM’s property. A judgment of foreclosure was entered on the deed of trust held by Lennar.

The Trust appeals from this judgment, advancing several arguments to restore the priority of all or most of its lien. It contends the modifications were not so substantial as to require a change in priorities, or the question of their materiality was a factual one that could not be resolved by summary…