Gladstone
Gladstone v. Bank of America, N.A. (In re Vassau)
Opinion
Lead Opinion
Bowie, J.
*866 ORDER ON TRUSTEE’S MOTION FOR SUMMARY JUDGMENT
The facts of this case are neither uncommon nor disputed. When this case was filed, and during the ninety days before, Debtors’ residence was subject to two deeds of trust securing obligations to two creditors-the Senior Lienholder and Junior Lienholder. The property was worth more than the claim of the Senior Lien-holder, but less than the claims of Senior Lienholder and Junior Lienholder combined. In other words, the Senior Lien-holder was fully secured and the Junior Lienholder was partially secured.
Debtors fell behind on their payments to Senior Lienholder. Within the 90 days prior to the petition, the Debtors made ten payments to the Senior Lienholder.
Though the transfers were made to the Senior Lienholder, Trustee seeks to avoid the transfers on the theory that they were preferences as to the Junior Lienholder. The Trustee and the Junior Lienholder have both moved for summary judgment. This Order addresses the Trustee’s motion.
BACKGROUND
Paul Eugene Vassau and Julie Ann Vas-sau (Debtors) filed their petition on July 1, 2009. Leslie Gladstone was appointed chapter 7 trustee (Trustee). Debtors scheduled the real…