Pinney v. Merchants' National Bank

Citations

• 71 Ohio St. (N.S.) 173

Syllabus

<p>Mortgages — Recording and assignment of — Effect of failure of assignee of mortgage to record assignment — Senior mortgagee not required to malee junior assignee party, when— Foreolosure proceedings — Rights of innocent purchaser— Section 4185, Revised Statutes — Act of April 16/1888.</p> <p>1. Section 4135, Revised Statutes, as amended April 16, 1888 (85 O. L., 284), authorizes the assignment of a mortgage to be recorded on the margin of the record thereof in the office of the county recorder. Such record is notice to all interested in the mortgaged premises, including mortgagees and subsequent purchasers, of the equitable right of the assignee in the mortgage, and that he is a necessary party to a suit brought to foreclose another lien upon the premises. But where such assignee fails to have his assignment so entered of record, and a senior mortgagee of the same premises brings an action to foreclose, he is, in the absence of notice or knowledge that the junior mortgagee has parted with his interest, justified in regarding the record as showing that the junior mortgagee remains the absolute holder of the mortgage, and in bringing him in as a party to the action. He is not required, at his peril, to ascertain whether or not some other person has an interest in the mortgage and make him a party.</p> <p>2. Where, in such case the apparent owner of the junior mortgage is made a party, and a sale is made of the premises founded upon proceedings in all respects regular, to an innocent purchaser, such purchaser will take title free and clear from the claim of the assignee of the junior mortgage.</p>