The bank obtained possession and a money judgment after the borrower refused to execute a settlement agreement. However the borrower argued that she had tendered some of the agreed settlement amount to the bank pursuant to the settlement agreement, although her ability to pay the balance depended upon her being able to refinance the existing mortgage over the property and discharge the bank’s mortgage.
The court noted that the difference between the amount that the borrower owes the bank if the borrower establishes the existence of the agreement, and the amount of her indebtedness to the bank if she fails to do so, exceeds $1M. The court reluctantly granted a stay but on strict terms to enable the dispute to be litigated quickly and finally and the court required the borrower to pay monthly interest upon the balance outstanding until the matter was decided at trial.
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