Hambly was the owner of a block of land in fee, he arranged a mortgage on the property with Blake for $ 50,000, and the mortgage was done in the proper Land Registry Office. Hambly used the funds for the renovation of an existing building on the premises, but discovered that he had insufficient funds to complete the changes. A few months later, he borrowed the sum of $ 10, 000 from his friend Clark and gave him a second mortgage on the property as security, Clark did not register the mortgage; instead, she placed it in her safe deposit box, When the renovations to the building were attacked, Hambly decided to install a swimming pool on the grounds. He borrowed $ 5, 000 from Simple Finance Co to pay the pool contractor for the installation, Simple Finance, as security for its loan to Hambly, took a mortgage on the property. The mortgage was registered the same day that the funds were given to Hambly.

Shortly thereafter, Hambly arranged a party to the swimming pool and invited her many friends to attend. At the party, Clark used to describe Anderson, another friend of Hambly, that she held a mortgage on Hambly's property, and that she would like to dispose of it in order to get the funds available for another more attractive investment. Anderson expressed an interest in the purchase of the mortgage and, after some discussion, agreed to give Clark $ 9, 000 for it. The next day, Anderson paid Clark the s9, 000 for the mortgage (when the full $ 10,000 principal was wasted and received a assignment of the mortgage.) When Anderson realized that the mortgage itself was not registered, he had the documents registered immediately .Unfortunately, he failed to notice the mortgage to Simple Finance in his examination of the title to the property. Hambly was killed in an automobile accident, some days before he was scheduled to make his first payments on the mortgages His only asset was his interest in the property. Blake instituted foreclosure proceedings when the first payment required under the mortgage becomes overdue. An appraisal of the property indicated that it had a market value of approximately $ 60,000.

Discuss the situation of the parties in this case Indicate their rights in the foreclosure action Comment on the possible outcome of the case