Ganchoff v. Bullock

Plaintiffs’ action involves the validity of a second mortgage given by plaintiffs to defendant as part of a refinancing transaction involving a mortgage to Home Owners’ Loan Corporation (hereinafter called “HOLC”). Plaintiffs contend that the second mortgage in question was without the consent of the HOLC and against public policy.

The facts are not in dispute and are briefly as follows: The property involved consists of four acres of land in Bay View owned by plaintiffs. Prior to the transactions in question the south two acres of this land were subject to a mortgage to the Bay View Building…