Federal Farm Mortgage Corp. v. Larson

The Farmers & Merchants Bank of Hixton had a $2,000 mortgage on the farm of defendant Theodore Larson. Another bank, which we will refer to as the Melby Bank, had a second mortgage on the land covered by the Plixton Bank mortgage and other lands. The Hixton Bank foreclosed its mortgage. The other bank was a party to the suit, but did not appear. The foreclosure judgment cut off the lien of its mortgage. The Plixton Bank was stabilized and its mortgage assigned to the trustees of the segregated trust. These trustees purchased at the sheriff’s sale made pursuant to the foreclosure judgment. The…