Liquidating Holding Corp. v. Mortgage & Contract Co.

Miller-Storm Company, Inc., herein referred to as “Miller-Storm,” realtors and builders, acquired or erected over a considerable period of time a large number of medium-priced houses. They turned their capital by first securing mortgages on the houses, then selling them on land contracts with down payments and serial payments at regular intervals, and then finally discounting the equities with investors. In most instances the houses were sold to people whose ability to pay depended upon steady employment. In the fall of 1929, real estate values in Detroit had been steadily declining from the…