Netherlands American Mortgage Bank v. Grafke

Citations

• 100 Wash. 188
• 170 P. 876
• 1918 Wash. LEXIS 736

Syllabus

<p>Subrogation—Remedies of Creditors—Recourse of Security to Surety. Where the purchasers of lands were defrauded by the false representations of the vendor, who put up mortgage notes as collateral security for a loan from an innocent holder in due course which was also secured by other direct security from the vendor, equity will not permit such holder of the mortgage to foreclose its collateral security against the purchasers while the other direct security from the vendor may be ample to pay the debt; since subrogation of a creditor to security given by the principal debtor to a surety for the debt will be allowed when the equities of the case demand it.</p>