N.J. Discount Co. v. Telesca

The bill is to foreclose a mortgage, and the question is whether it is entitled to priority over another held by the defendant Bernz, assigned to him by one Pietriella. The Pietriella-Bernz mortgage was executed and recorded six months before the complainant's mortgage was given. Pietriella agreed, in writing, with the complainant to postpone his mortgage, and then sold and assigned it to Bernz, who purchased without notice of the postponement. The agreement to postpone was not recorded.

An assignee of a mortgage takes subject to the defenses the mortgagor may have, but not to latent equities…