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LOONEY v. FARMERS HOME ADMIN.

No. 85-1872.

794 F.2d 310 (1986)

John L. LOONEY and Esther G. Looney, Plaintiffs-Appellees, v. FARMERS HOME ADMINISTRATION, Defendant-Appellant.

United States Court of Appeals, Seventh Circuit.

Decided June 27, 1986.

Attorney(s) appearing for the Case

Ronald L. Wilson, Badell & Wilson, Rushville, Ind., for plaintiffs-appellees.

Deborah Ruth Kant, Appellant Staff, U.S. Dept. of Justice, Washington, D.C., for defendant-appellant.

Before CUDAHY and COFFEY, Circuit Judges, and ESCHBACH, Senior Circuit Judge.

CUDAHY, Circuit Judge.

Lowry and Helen McCord ("the McCords" or the "buyers") arranged to purchase the property of John and Esther Looney ("the Looneys" or the "appellees") in Rush County, Indiana. When the McCords fell into financial troubles, they secured an emergency loan through the Farmers Home Administration (the "FmHA" or the "government"). In exchange, the FmHA received a second mortgage on the property. Later, after paying $123,280 to the Looneys, the McCords...

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