Home Owners' Loan Corp. v. Baker

The question for determination is whether a note and mortgage given by the mortgagor to compensate the mortgagee for a part of a loss sustained by the said mortgagee in accepting bonds of the Home Owners’ Loan Corporation in payment of a prior note secured by a mortgage on the same real estate, is unenforceable and void.

The Court of Common Pleas of Wayne county so held, in an action on a cross-petition for judgment on the note and foreclosure of the mortgage given as security therefor, and the present appeal on questions of law is from that judgment.

The legal contest is solely between the…