Assigned Estate of Hunter

Citations

• 257 Pa. 32
• 101 A. 79
• 1917 Pa. LEXIS 679

Syllabus

<p>Mortgages — Bonds—Release of part of mortgaged premises — Discharge of mortgagor — Act of April 8, 18B2, 7 8m. L. 551.</p> <p>1. Where a mortgagor has parted with his title to the mortgaged premises, a release of .part thereof by the mortgagee without the knowledge or consent of the mortgagor will discharge the latter from personal liability for any loss to the mortgagee resulting from a deficiency in the proceeds on a subsequent sale under foreclosure proceedings. By such-release the mortgagee assumes the risk of the unreleased portion of the property being of sufficient value to secure his debt.</p> <p>2. At the audit of the account of a substituted trustee of an assigned estate it appeared that the assignor previous to the assignment had mortgaged certain real estate giving the usual penal bond to further secure the mortgage debt; subsequent to the assignment certain portions of the mortgaged premises were released from the lien of the mortgage without the consent or knowledge of the mortgagor, and the mortgaged premises were afterwards sold for a sum insufficient to pay the mortgage and judgment was entered upon the bond. The holder of the judgment claimed a preference from the proceeds of the sale of certain other real estate for the balance due over other creditors. The lower court decided that by the release of said portion of the mortgaged premises, without the consent of the mortgagor, the mortgagor had been discharged of any liability on the bond and disallowed the claim. Held, no error.</p> <p>3. The Act of April 2, 1822, 7 Sm. L. 551, relating to mortgages, is not applicable to this case.</p>