Hearthstone Homes, Inc., Ch. 11, BK12-80348-TLS (Feb. 28, 2013)
The debtor was a homebuilder. The debtor’s lender held a deed of trust lien on certain real estate and improvements owned by the debtor. A construction lien was subsequently filed against the same property for work performed. When the home sold, the court ruled that the deed of trust lien had priority over the construction lien, so the lender was entitled to the distribution of the sale proceeds.