Schaffner v. Ebel

SCHLEGEL, Judge.

The United States appeals an order denying its claim to certain rental proceeds paid by a debtor to a receiver holding the vendors’ interest in a partition action. The order authorized the receiver to pay delinquent real estate taxes with the proceeds. We reverse the judgment of the trial court and remand with directions.

In October 1976 Lillie B. Ebel entered into a contract to sell a farm to her grandson, Wayne Ebel. The standard short form contract used by the parties contained the usual forfeiture and foreclosure clauses and required payments of $6,000 each year for nine…