A hotly contested area of mortgage foreclosure concerns the priority between mortgages and mechanics liens. In Provident Bank v. Tri-County Asphalt, Inc., 806 N.E.2d 802 (In. Ct. App. 2004), the Court held that the holder of the mechanic's lien had priority to its improvement, in this instance a driveway, even where the mortgage was recorded prior to the mechanic's lien. To reach this result, the court considered the intent behind I.C. 32-28-3-2, the Indiana mechanic's lien statute, and I.C. 32-21-4-1, the Indiana priority statute. The court reasoned that it could best serve the intent behind both statutes if the proceeds from the sale of the improvement went to the mechanic's lien holder even where the mortgagee had recorded first.
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