Meltzer v. Blumberg

The second mortgagee defends the foreclosure of a first mortgage solely upon the ground that it has been reduced by the payment of a sum by an insurance company under a fire policy. The plaintiff became the holder of the first mortgage by assignment from the Lawyers Mortgage Company, dated May 27, 1927. The mortgage was placed on the property in 1909. After that mortgage was made the property was sold to the answering defendant Horn*234berger, and later she sold it to a party named Goldstein, taking back a second mortgage, dated May 29, 1924. The second mortgage states that it is subject to a…