24 Neb. 461 | Neb. | 1888
This action was commenced in the district court of Hamilton county by plaintiff, the holder of a junior mortgage on real estate, against defendant, the purchaser of the land at judicial sale upon the foreclosure of a prior mortgage, for the purpose of requiring him to redeem plaintiff’s mortgage, or in case of his failure so to do, that the premises be sold. Upon trial the district court found that defendant’s grantor had purchased the property at judicial sale, as alleged, and that while in the possession thereof, subsequent to such purchase, and in the belief that he was the owner, placed lasting and valuable improvements thereon of the value of $791, for which he was entitled to credit. The court also refused to charge him with the value of the rents and profits during the time of his • possession. From this decree plaintiff appeals, and alleges that the district court erred — 1st, In allowing defendant for his improvements ;• and 2d, In refusing to charge him with the rents and profits; and the decisions upon these two questions are now presented for review.
We think it pretty well settled that improvements made by a purchaser in good faith upon real estate after foreclosure of a senior mortgage, constitute an equity in favor of such purchaser which will be protected as against junior mortgagees. It is quite probable that had not the improvements been made, plaintiff would not have sought to compel a redemption. The property was sold, presumably, for all it would bring in the market at the time of its sale, and purchased by Benson, defendant’s grantor. It would seem to be against equity for a junior mortgagee to remain passive until valuable improvements were made, and
The decree of the district court was correct, and it is affirmed.
Degree affirmed.