Iowa Bankruptcy Court Calls Conditional Sale Contract An Equitable Mortgage

A Federal Bankruptcy Court in Iowa ruled last month that the equitable mortgage doctrine was applicable to a real estate transaction between a "financially strapped" property owner and an investor involving a contract of sale coupled with a simultaneously executed lease agreement. The court disrgarded the form of the transcaction as portrayed by the executed documents and looked to the substance of the deal and called the entire transaction an equitable mortgage. For a more extensive post, including the link to the case, see In re Litwiller; Iowa Bankruptcy Court Calls Conditional Sale Contract An Equitable Mortgage
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