64 Iowa 708 | Iowa | 1884
The property in question is lot six, and the undivided half of lot 5, in block fourteen, in the city of Keokuk. In 1878, one Enos Hardin was the owner of the property. In November of that year, he mortgaged it to Rix, Hale & Co., to secure the sum of $2,400, and in March
That defendant had a lien on the premises for the amounts paid by Bix, Hale & Co., as taxes on the mortgaged premises, cannot be doubted. But his lien in this respect was under the mortgage. It was created by the contract between the mortgagor and the mortgagee, that any sums which should be paid by the latter for such purposes should be added to the indebtedness secured by the mortgages. An ordinary purchaser at tax sale acquires by his purchase the lien on the property of the county and state for the taxes due. But, as Bix, líale & Co. had a contract with Hardin that they should have the security of the mortgage for any amounts which they might pay for taxes on the premises, the law treats their transaction of bidding in the property at the tax sale as a mere payment of the taxes, and gives them a lien for the amount under their contract. At the time the judgment of foreclosure was taken, then, the mortgages were security for the amounts paid out in the purchases at the tax sales, and in payment of the subsequent taxes, as well as for the original indebtedness, and defendant' was clearly entitled to have all of said amounts included in his judgment against Hardin. He took judgment, however, but for the amount of the original debts, and he sold the whole of the mortgaged premises for the satisfaction of that amount.
It is very clear, we think, that the lien of the mortgage was thereby exhausted, and that the purchaser took a clear and absolute title to the premises. The case is not at all distinguishable in principle from Poweshiek County v. Dennison, 36 Iowa, 244. And the fact that plaintiff knew when he purchased the premises that defendant was claiming a lien thereon for the amount of the taxes, separate from the lien
Affirmed.