FITZGERALD v. CLELAND

No. 80-1662.

650 F.2d 360 (1981)

John FITZGERALD, et al., Plaintiffs, Appellants, v. Max CLELAND, et al., Defendants, Appellees.

United States Court of Appeals, First Circuit.

Decided June 4, 1981.


Attorney(s) appearing for the Case

Howard T. Reben, Portland, Me., with whom Sunenblick, Fontaine & Reben, Portland, Me., was on brief, for appellants.

Paula D. Silsby, Asst. U. S. Atty., Portland, Me., with whom Thomas E. Delahanty, II, U. S. Atty., Portland, Me., was on brief, for appellee Max Cleland.

George P. Limberis, Bangor, Me., with whom Limberis & Limberis, Bangor, Me., was on brief, for appellee Philip Singer.

Before ALDRICH, CAMPBELL and BREYER, Circuit Judges.


BREYER, Circuit Judge.

Appellants borrowed money from the Bangor (Maine) Savings Bank and gave the Bank a mortgage on their property. The Veterans' Administration (VA) guaranteed the loan under the provisions of 38 U.S.C. §§ 1810-1819 and 38 C.F.R. §§ 36.4300-36.4364. Appellants defaulted on the loan in 1974. In early February 1975 the VA decided not to include them in a special refunding program.

The Bank initiated foreclosure proceedings...

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