Mortgage & Contract Co. v. First Mortgage Bond Co.

Plaintiff held a second mortgage on real estate, expressly made subject to the first mortgage, and containing the usual provision that if the mortgagor did not pay taxes, the mortgagee might pay them and the amount, with interest at 7 per cent., should “constitute a further lien upon said premises under this mortgage.” Plaintiff paid taxes, foreclosed the mortgage by advertisement, bid in the property, and the sale price was applied upon principal, interest, expenses, and taxes, covering the latter item in full with interest at 7 per cent. There 'was no redemption.

Before the redemption period…