Model Improvement Company v. Sands

ADAMS, J.:

This is an appeal from a final decree denying foreclosure of certain real estate mortgages.

The special master found that plaintiff purchased the mortgages while they were in default and'with knowledge and subject to an agreement between mortgagor and mortgagee not to foreclose so long as the mortgaged premises were in the custody of a third party who was collecting the income from the property and applying same on the indebtedness.

The master further found that after plaintiff purchased the mortgages the agreement was breached by defendants in that the income was not applied on the…