Mortgages — Merger — Conveyance to mortgagee under and subject to mortgage — Intention of parties — Extinguishment of mortgage debts — Opening judgment.
1. The principle of law that where the holder of a mortgage purchases the fee, such purchase operates as a payment of the mortgage debt applies only where it is the intention of the parties that the purchase should so operate. [9]
2. Where judgment is entered on a bond accompanying a mortgage and the obligee in the bond and owner of the premises conveys title to the mortgagee under and subject to the mortgage under the terms of an agreement by which the mortgagee agrees to reconvey to the mortgagor upon payment of the amount due under the mortgage, and no purchase price is paid or intended to be paid by the mortgagee, and there is nothing to indicate that it was any part of the agreement between the parties that the judgment should be opened, the conveyance of the fee does not operate as an extinguishment of the mortgage debt, and a rule to open judgment is properly discharged. [7-10]
Argued December 1, 1932.
PER CURIAM, January 3, 1933:
The order of the court below is affirmed on the opinion of the learned trial judge.