Helbreg v. Schumann

Citations

• 150 Ill. 12
• 37 N.E. 99

Syllabus

<p>1. Deed absolute in eoem — shown to be a mortgage — by parol evidence. The law is well settled that a deed absolute on its face may be shown by parol evidence to have been executed to secure the payment of money, when it will be treated, in equity, as a mortgage.</p> <p>2. The declarations and statements of the parties made pending the negotiations, and at the time of the final execution of a deed and contract, are admissible to show that the deed was taken as a mortgage or security, and the rule that the terms and conditions of a writtep contract can not be varied by parol evidence does not apply.</p> <p>3. A gave a mortgage on a tract of land owned by him, and afterward sold and conveyed to B the north half of the same, and failing to pay the mortgage or the interest thereon, the administrator of the estate of the mortgagee filed a bill to foreclose the mortgage. An arrangement was then made that B should pay the costs, etc., and $125 of the debt, and assume payment of the balance due the estate, and A was to convey the south half of the tract to B, who was to mortgage the same to the administrators, and the time of payment was extended, which arrangement was executed, and at the same time B gave to A a contract to reconvey oh payment of the mortgage debt and the $125 advanced: Held, that the transaction amounted, in equity, to a mortgage from A to B to secure the latter.</p> <p>4. Same — debt secured by the deed. In such case B was bound to pay A’s debt in order to protect his own part of the land, and the debt so assumed, and the payment of the costs of the suit, constituted a debt from A, which might properly be secured by mortgage.</p> <p>5. Insane persons — declaring forfeiture against. After a person has been adjudged insane, no forfeiture of his contract for a failure on his part to pay certain sums of money, as, an installment of interest and taxes on land, can be declared, except by decree of a court of competent jurisdiction where he is properly repre