Marcia executed a mortgage on Blackacre to secure her indebtedness to Ajax Savings and Loan Association in

Question:

Marcia executed a mortgage on Blackacre to secure her indebtedness to Ajax Savings and Loan Association in the amount of $25,000. Later, Marcia sold Blackacre to Morton. The deed contained the following provision: ‘‘This deed is subject to the mortgage executed by the Grantor herein to Ajax Savings and Loan Association.’’ The sale price of Blackacre to Morton was $50,000. Morton paid $25,000 in cash, deducting the $25,000 mortgage debt from the purchase price. Upon default in the payment of the mortgage debt, Ajax brings an action against Marcia and Morton to recover a judgment for the amount of the mortgage debt and to foreclose the mortgage. Can Ajax recover from Marcia and Morton? Explain.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Smith and Roberson Business Law

ISBN: 978-0538473637

15th Edition

Authors: Richard A. Mann, Barry S. Roberts

Question Posted: