Hafford v. Smith

In this case, the appellants (plaintiffs below, and to whom we shall sometimes refer as the plaintiff, or plaintiffs) and respondents Smith (to whom we shall sometimes refer as the defendant, or defendants) exchanged property. In return for a credit toward the purchase of a house trailer, the defendants conveyed their interest (or “equity”) in a small tract of land, and their furniture, to the plaintiffs. The real property, at the time, was subject to two encumbrances, a first deed of trust held by the defendant Savings and Loan Associa- ' tion, which was foreclosed prior to the trial and…