Investment Securities Co. v. Adams

Citations

• 37 Wash. 211
• 79 P. 625
• 1905 Wash. LEXIS 705

Syllabus

<p>Mortgages — Limitation of Actions — Mortgagee in Possession. The statute of limitations does not run against the right of foreclosure as against a mortgagee in possession.</p> <p>Same — Possession Under a Void Foreclosure — Purchaser as Assignee. A mortgagee, who after default takes possession in good faith under a void foreclosure, holds as a mortgagee in possession regardless of the consent of the mortgagor, and a purchaser at such a void sale becomes the assignee of the mortgage.</p> <p>Same — Void Foreclosure — Relief Against Mistake — Vacating Void Decree — Bringing in New Parties. Where children of a deceased mortgagor were not made parties to the foreclosure action because unknown to the plaintiff, who in good faith took possession supposing that the full title was conveyed by the foreclosure sale, the mistake calls for equitable relief, and the proper course is to vacate the decree, allow the plaintiff to file an amended, petition, and foreclose against the interest of the children.</p> <p>Same-Equity — Accounting—Payment of Mortgage Debt. Where a void foreclosure decree is vacated at the instance of the plaintiff in order to bring in, as necessary parties, the children of a deceased mortgagor, who own a half interest in the property, the children are not entitled to plead the bar of the statute while the mortgagee was in possession, or to an equitable accounting for rents and profits, until they first do equity by paying the mortgage debt.</p>