Nirdlinger's Estate

Van Dusen, J.,

Apportionment of proceeds of sale of real estate acquired under mortgage foreclosure

The trustees foreclosed mortgages and, after an interval, sold the properties. In each case the sale price was less than the mortgage, or at least less than the mortgage plus expenses of foreclosure and other items charged to principal. There was no net revenue pending resale. The auditing judge directed that the amount realized should be apportioned between principal and income according to the following rule:

“I rule that the proceeds of sale of real estate acquired through foreclosure of…