215 Wis. 613 | Wis. | 1934
The question of the validity of a deed of the mortgaged premises, which was given by a mortgagor to the mortgagee in settlement and in discharge of the mortgage indebtedness, has been considered by this court in a number of cases. Smith v. Crosby, 47 Wis. 160, 2 N. W. 104; Rockwell v. Humphrey, 57 Wis. 410, 15 N. W. 394; Kunert v. Strong, 103 Wis. 70, 79 N. W. 32; Lynch v. Ryan, 132 Wis. 271, 111 N. W. 707, 112 N. W. 427; Young v. Miner, 141 Wis. 501, 124 N. W. 660; Coates v. Marsden, 142 Wis. 106, 124 N. W. 1057; Gutschenritter v. Hosterman, 201 Wis. 558, 230 N. W. 610. It was settled in those cases that, in order to sustain such a conveyance as valid, it -must be established by clear and satisfactory proof, upon closely scrutinizing the transaction, that the conveyance was voluntary on the part of the mortgagor; based on an adequate consideration ; untainted by fraud; made without advantage being taken of the debtor’s necessity to drive a hard bargain; and that there was a discharge of the mortgage indebtedness or at least a binding agreement to consider that indebtedness paid and discharged. As was said in Lynch v. Ryan, supra:
“Such transactions will be closely scrutinized, and if the proof be clear and satisfactory that the requirements above named have been observed the transaction will be sustained, otherwise not. In doubtful cases the courts incline to hold that the mortgage relation still exists.”
The record discloses that those propositions were fully recognized and appreciated by the learned circuit judge, as well as by counsel for all parties in this case. With those rules manifestly well in mind the court found that on October 17,1931, plaintiffs, who were then mortgagors, conveyed by warranty deed all of their equity of redemption and interest in the farm in question to the defendant, William Smith, who was the holder of the mortgage which had been given on the farm by plaintiffs to secure their note, upon which the sum of $15,650 was then due for principal and interest; that
Those findings are well supported in all respects by competent evidence. There are conflicts in the testimony, but it was for the trial court to determine the resulting issues. At
By the Court. — Judgment affirmed.