Mellon Financial Services Corp. 7 v. Lafayette Insurance Co.

BYRNES, Judge.

On June 12, 1985 Laura Bonilla sold the residential rental single located at 8404 Boone Street in Metairie to her son Carlos Bonilla and his wife Rosa, for $50,000, of which only $30,037.89 was paid in cash. For the balance of $19,962.11 the purchasers assumed responsibility for the payment of a mortgage in favor of plaintiff, Mellon Financial Services # 7.1 The property was insured by Lafayette Insurance Company for $26,000.

Mrs. Bonilla was shown as the named insured on the policy and Mellon Financial Corp. # 7 was shown as mortgagee on the policy. On August 17, 1987, the…