Willamette Collection & Credit Service v. Gray

On December 24, 1924, defendant A. L. Gray and his wife executed a note and mortgage to the appellant Travelers Insurance Company to secure the payment of a loan of $2,500. The mortgage which was timely recorded constituted a first lien on 71 acres of land in Lane county, Oregon. Gray defaulted in payment of principal and interest and, in 1935, negotiations were entered into resulting in an agreement whereby Gray and his wife were to execute a deed to the Travelers Insurance Company in consideration of their release from liability for payment under the note and mortgage. The insurance…