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IN RE GOSNEY

BAP No. SC-95-1978-AsJO, Bankruptcy No. 94-03081-M7, Adv. No. 94-90368-M7.

205 B.R. 418 (1996)

In re Jack L. GOSNEY and Colleen A. Gosney, Debtor. Jack L. GOSNEY and Colleen A. Gosney, Appellants, v. Walter R. LAW, Appellee.

United States Bankruptcy Appellate Panel of the Ninth Circuit.

Decided November 26, 1996.

Attorney(s) appearing for the Case

Sebastian D'Amico, San Diego, CA, for Jack & Colleen Gosney.

William C. Mathews, San Diego, CA, for Walter R. Law.

Before: ASHLAND, JONES, and OLLASON, Bankruptcy Judges.

OPINION

ASHLAND, Bankruptcy Judge:

STATEMENT OF FACTS

The debtors, Jack and Colleen Gosney, were social acquaintances and business partners of Richard Riel, a mortgage broker. At all relevant times herein, debtors and Riel jointly owned two investment properties.

In September 1990, debtors purchased a single family residence in San Diego, California. Debtors applied for a construction loan on the property from Seacoast Equities...

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