Shepard v. First American Mortgage Company

Bell, Judge:

This is an action to set aside a deed and subsequent mortgage on the ground that the grantor was not mentally competent. The circuit court found that the grantor, Ella Mae Shepard, was not competent when she executed the deed to her son, Leroy. However, the court entered judgment for First American Mortgage Company, the mortgagee of Leroy, on the ground that it took the mortgage in good faith, for value, and without notice of Mrs. Shepard’s lack of capacity. Mrs. Shepard appeals. We reverse.

Mrs. Shepard and Leroy inherited property located at 202 North Powers Street in Florence…