Branch v. Barnes

This is a foreclosure proceeding in which, after the court appointed a receiver upon plaintiff-junior mortgagee’s petition, the senior mortgagee took possession for 18 months under an assignment of rents, collected the rents, part of which were applied on the first mortgage and turned the balance over to the mortgagor. Upon being restrained from further collections, the insurance company filed a counterclaim to foreclose upon its mortgage for the balance due. The chancellor dismissed the counterclaim and decreed that plaintiff had the first lien, prior to all defendants. The insurance company…