Opinion
Gen. No. 42,492. (Abstract of Decision.)
Opinion filed May 29, 1945 Released for publication June 14, 1945
FORECLOSURE OF MORTGAGES, § 219 — when lender of purchase money taking title as security not liable for foreclosure deficiency. Where money lender takes title to property, subject to first and second mortgages, as partial security for purchase money loaned to buyer, and contract with latter also provided for pledging of certain other securities as collateral and lender agreed to reconvey upon repayment by borrower, but borrower never repaid and later became bankrupt, and lender, as titleholder, made part payment on and arranged extension of mortgages to later maturity, but in none of transactions did lender assume or agree to pay borrower's mortgage indebtedness, held in foreclosure procedure that said titleholder, having become such merely as security for loan, and not having assumed mortgage indebtedness of borrower, was not personally liable for any deficiency resulting from foreclosure sale, lender's deed being in the nature of a third mortgage.
See Callaghan's Illinois Digest, same topic and section number.
Appeal from the Superior Court of Cook county; the Hon. PETER H. SCHWABA, Judge presiding.
Decree affirmed. Heard in the second division, first district, this court at the December term, 1942.
LeRoy V. Penwell, for appellant;
Benjamin S. Mesirow, for certain appellees;
Julius M. Lorenz, of counsel.
Not to be published in full. Opinion filed May 29, 1945; released for publication June 14, 1945.