Buchanan v. Century Federal Savings & Loan Ass'n

JOHNSON, Judge:

This case presents the question of whether a mortgagor’s advance payment to a mortgagee of money in escrow to be used to pay taxes and insurance premiums constitutes a trust. On the facts presented in this case, we find that a trust is created.

At the non-jury trial, the parties stipulated to the following facts. Roger and Dorothy Buchanan purchased a two family residential dwelling located on Dawson Street, Pittsburgh, Pennsylvania, which they bought as investment property. In financing the purchase they executed a mort*3gage on May 29, 1969 with Abbott Mortgage Corporation of…