In the Matter of the Foreclosure of the Deeds of Trust executed by Grover C. Brown and wife, Margaret C. Brown dated April 1, 1980, recorded in Book 949 at Page 109, and Book 949 at Page 111 of the Buncombe County Registry
Heard in the Court of Appeals March 4, 2015
As Corrected April 23, 2015.
Buncombe County, Nos. 13 SP 928, 13 SP 929.
BULL & REINHARDT, PLLC, by Adam W. Bull, for appellee.
Wilder Wadford, for appellants.
Judges GEER and INMAN
Appeal by respondents from order entered 9 April
2014 by Judge J. Thomas Davis in Buncombe County Civil Court.
On 1 April 1980, Sherrill Brown and Merton L. Brown conveyed two pieces of real property in Buncombe County to Grover C. Brown and Margaret C. Brown (" appellants" ) by two warranty deeds. Grover C. Brown was Sherrill Brown's father and Merton Brown was Grover's step-mother. In exchange for the conveyance, appellants executed two purchase money promissory notes, secured by separate deeds of trust, in the amounts of $245,000.00 (" Note 1" ) and $55,000.00 (" Note 2" ). The principal and interest due on the notes was payable to Sherrill and Merton Brown in monthly installments over the next thirty years. The parties have stipulated that the maturity date on the notes was 1 April 2010. A deed of trust securing Note 1 was recorded in Book 949 at Page 109. A deed of trust securing Note 2 was recorded in Book 949 at Page 111, with both deeds of trust appearing on record in the Buncombe County Registry of Deeds. Both deeds contain provisions allowing for acceleration of the indebtedness upon default.
Upon Sherrill Brown's death in 1988, Merton Brown, as executrix of his estate, assigned herself Sherrill Brown's interest in Note 1 and Note 2, which had remaining principal balances of $214,572.26 and $48,169.03, respectively.
Appellants continued to make payments on both notes until 1 February 1995. At that time, the remaining principal balance was $214,572.26 on Note 1 and $48,169.03 on Note 2. After appellants made their final payment in 1995, Merton Brown did not accelerate the amounts due under Note 1 or Note 2.
In April 1995, Grover Brown offered Merton Brown $100,000.00 in proceeds from the sale of dairy cattle as payment on Note 1 and Note 2. Merton Brown refused to accept the $100,000.00. Merton Brown informed Grover Brown that she had forgiven the debts and would not foreclose on the deeds of trust. In reliance on ...