229 N.W. 874 | Minn. | 1930
Under our laws a mortgagee has a mere lien on the property as security for the debt. The mortgagor is entitled to the possession of the property and to the rents and profits therefrom until the mortgage has been foreclosed and the period for redemption has expired. The mortgage gives the mortgagee no lien on rents or profits and no right to have them applied on the mortgage debt. G. S. 1923 (2 Mason, 1927) § 9572; Marshall Ilsley Bank v. Cady,
Under some circumstances however the mortgagee has the right to require the mortgagor to apply rents and profits in protecting the property from waste, and failure to pay taxes or instalments of interest on prior mortgages as they become due is deemed waste as to subsequent mortgagees. But any rights which the holder of a second mortgage may have to require the mortgagor to apply rents and profits in payment of such taxes and interest terminate when the second mortgage is foreclosed and the property sold thereunder. The purchasers at the sale purchase the property subject to all prior liens thereon and acquire no right to have rents and profits which accrue prior to the expiration of the period of redemption applied on such liens. Marshall Ilsley Bank v. Cady,
The purchasers now concede that they are not entitled to have the rentals applied upon instalments of either taxes or interest which become due before the sale, but point out that an instalment of taxes and also an instalment of interest has become due since the sale and urge that the rentals should be applied on those items. This contention like the prior one has already been decided adversely to them. When they purchased the property at the sale they took it not only subject to the taxes and interest then past due but subject to the instalments thereof which would become due thereafter. Windom Nat. Bank v. Reno,
As the mortgage gave the mortgagees no lien on the rents and profits, they have no special or preference right thereto growing out of the mortgage and are not entitled to have them applied on the deficiency judgment in this proceeding. Marshall Ilsley Bank v. Cady,
The record failing to show any ground which would justify the appointment of a receiver, the order must be and is reversed.