Girard Acceptance Corp. v. Wallace

This is an appeal by mortgagors (defendants) from a summary judgment against them in an action to foreclose two second mortgages on their premises used as a residence. Each mortgage covered a separate tract.

The mortgages were given as additional collateral in connection with a purchase of a used Cadillac automobile by defendants from Whelan Pontiac-Buiek, Inc. (seller). The latter had arranged financing of the purchase with plaintiff on behalf of defendants. Plaintiff would not finance the sale without the additional security of the second mortgages.

Defendants executed an installment sale and…