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The South Carolina Court of Appeals rejected the replacement mortgage doctrine on Nov. 25, 2020 and held a home equity line of credit had priority over a subsequent mortgage that secured refinancing of a mortgage prior in time and senior to the HELOC. In
ArrowPointe Federal Credit Union v. Bailey, linked here, the Court of Appeals relied on South Carolina’s statutory race-notice framework to find the home equity line creditor had priority because it recorded its lien before the second mortgage was made and recorded. Appellant filed a motion to reconsider on Dec. 9, 2020, and no action had been taken as of Dec. 30, 2020.