Levitz v. Capitol Savings & Loan Co.

March 16, 1927, plaintiffs sold to one Blatny certain premises on land contract for the snm of $2,200 with nothing paid down. In June, 1928, Blatny made an application for a loan on the property from defendant company. The loan was approved in the snm of $5,500, the purpose being to construct a two-family house on the premises. August 28, 1928, Blatny and wife executed the mortgage to defendant and the same was recorded August 29,1928, although at this time no money was paid to Blatny.

Prior to this time plaintiffs had loaned various sums of money to Blatny and had sold him some furniture, and…