I am considering an article on a recent legal issue that came up in my practice.  A client (mortgagee) and the borrower were sued by neighbors for violating a restrictive covenant in the deeds.  The covenant disallowed manufactured homes on the subject property.  However, the financing was for the purchase of the land and a manufactured home, which was moved onto the property shortly after the closing.  The policy included an ALTA 7.  Had several back and forths with some co-workers about filing a claim.  Some argued that a claim could not be filed because the moho was moved onto the property post-policy.  I argued that a claim could be filed because the financing was intended for the purcahse of the mobile home and the land together and the covenant was in the chain of title prior to the issuance of the policy.

Has anyone run up against this issue before?  If so, does anyone know of some good resources I can look to?  What are your thoughts?