Belleville Savings Bank v. Reis

Citations

• 136 Ill. 242
• 26 N.E. 646

Syllabus

<p>1. Mortgages—merger in the fee—the entire estate vested in the mortgagee—extinguishment of the debt. Where one is absolutely entitled, in his own right, to a charge or incumbrance upon land, with no intervening interest or lien, the charge will, at law, merge in the ownership, and cease to exist. Under like circumstances a merger will take place in equity, where no intention to prevent it has been expressed, and none is implied from the circumstanees and the interests of the party.</p> <p>2. The mortgage debt will be presumed to have been discharged as soon as the holder of it becomes invested with the title to the mortgaged premises, on the principle that a party can not sue himself at law or in equity. The purchaser will be presumed to have bought the land at its value, less the amount of indebtedness secured thereon, and equity will not allow him to hold the land and still collect the debt from the mortgagor.</p> <p>3. Same—prior mortgagee purchasing under junior mortgage—effect as an extinguishment of the prior mortgage debt. Where the holder of a debt secured by mortgage becomes the purchaser of the title to the land under a bill to foreclose a second mortgage, and receives a certificate of purchase, he will, after the period allowed for redemption, be the equitable owner of the land, although he has not taken out a deed; and if there are no intervening rights, the prior mortgage, and the debt thereby secured, will be merged in his equitable title, and extinguished, and he can not thereafter collect the original debt thus extinguished.</p> <p>4. Judicial sales—time to take out the deed—effect of neglect. Where the purchaser of land at a master’s sale fails to take out a deed on his certificate of purchase within five years, the certificate becomes void, and the purchaser’s right to a deed will be gone.</p> <p>5. Same—rights of mortgagor—where deed under junior mortgage is not taken out in proper time. On cross-bill by the heirs of a deceased mortgagor, to ha