HOUSING AUTHORITY OF THE CITY OF MIAMI, FLORIDA, APPELLANT,
v.
ANNA MACHO, APPELLEE

Fla. 3d DCA | 1966-01-18
No. 65-439
Before CARROLL, BARKDULL and SWANN, JJ.
181 So. 2d 680 Florida District Court of Appeal, Third District (1966) Positive Treatment
Cited by 4 cases

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Synopsis

The Housing Authority of Miami appeals a mortgage foreclosure decree, challenging whether a satisfaction of the mortgage obtained from an assignee extinguished the original mortgagee's rights and whether the decree improperly included a personal judgment. The court held that assignment of the mortgage as security gave constructive notice to subsequent purchasers and that satisfaction by the assignee did not terminate the mortgagee's rights, but modified the decree to remove the improper personal judgment.


Holding

The assignment of mortgage as security gave constructive notice to subsequent purchasers; satisfaction by the assignee did not extinguish the mortgagee's rights; and personal judgments should not be included in mortgage foreclosure decrees. The decree was affirmed as modified by removing the improper personal judgment.


Key Quotes

“The recorded assignment gave notice the assignment was for security, and inquiry thereby reasonably prompted would have revealed to the prospective purchaser that the debt secured by the assignment had been discharged and that the original mortgage debt remained unpaid.”

Establishes that constructive notice from the recorded assignment was sufficient regardless of purchaser's reliance on abstract of title.

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Facts & Procedural History

The mortgagee Anna Macho gave a $5,000 mortgage, which she assigned to Cecelia Kasov as security for a $2,000 obligation. The assignment was recorded.…

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Opinion of the Court
CARROLL, Judge.

CARROLL, Judge.

The appellant seeks reversal of a mortgage foreclosure decree. The mortgage was given to secure an indebtedness of $5,000. The mortgagee, Anna Macho, assigned the mortgage to one Cecelia Kasov to secure a $2,000 obligation owed by the mortgagee to the assignee. The assignment of mortgage was duly recorded. After the $2,000 obligation for which the mortgage was assigned had been paid, and while a substantial part of the original mortgage indebtedness remained unpaid, with no reassignment of the mortgage having been made to the mortgagee, appellant purchased the property, in connection with which the purchaser-appellant obtained from the assignee a satisfaction of the mortgage. Later the mortgagee filed this suit for foreclosure of the mortgage, alleging default in payment, and a summary final decree of foreclosure resulted in favor of the plaintiff-mortgagee.

On appeal the defendant-owner contends, first, that the satisfaction obtained from the assignee operated to extinguish the mortgage ; second, that there was a triable issue of fact as to whether appellant had notice that the assignment was for security; and third, that it was error to include in the decree a judgment against the defendants for the mortgage indebtedness, attorney’s fees and costs. We hold that the first and second contentions of the appellant are with*681out merit. Appellant’s third contention is meritorious and requires a modification of the decree.

The recorded assignment of mortgage recited that it was given as security. The fact that in purchasing the property the appellant relied on an abstract of title which listed the assignment without showing its expressed character as collateral, could not serve to insulate appellant from the notice thereof which the public record supplied. The recorded assignment gave notice the assignment was for security, and inquiry thereby reasonably prompted would have revealed to the prospective purchaser that the debt secured by the assignment had been discharged and that the original mortgage debt remained unpaid. See Zaucha v. Town of Medley, Fla.1953, 66 So.2d 238, 240, and cases cited there. Satisfaction of the unpaid mortgage, by the person to whom it had been assigned as security, did not terminate the mortgagee’s rights therein. Hulet v. Denison, 146 Fla. 478, 1 So.2d 467. By reason of the foregoing, the claimed issue as to whether appellant, on purchasing the property, had actual knowledge that the assignment was for security and that the debt secured by the assignment had been paid, if such issue existed, was not material.

The final decree, by paragraph num-her 2, granted judgment against the defendants for the amounts due under the mortgage.1 Inclusion of such judgment in the mortgage foreclosure decree is not proper. Accordingly the decree is modified by striking therefrom paragraph “2”, which granted personal judgment against the defendants, and by substituting therefor a paragraph as follows:

“2. There is due and owing to the plaintiff, on the note and mortgage declared upon, $4,157.95 representing the unpaid principal and interest thereon to January 21, 1965, plus $900.00 attorney fees and $148.19 costs, making a total of $5,206.14.”

As thus modified the decree is affirmed.


Cases With Similar Vibessemantic neighbors from the corpus


Citator

Cited By

  • McCAUSLAND v. Davis, 204 So. 2d 334 (Fla. 2d DCA 1967)
    …tence and contents, gives rise to implied notice of such other facts as would be disclosed by duly prosecuted inquiries suggested by it. Hagan v. Sabal Palms, Inc., supra, 186 So. 2d at 313; Housing Authority of City of Miami v. Macho, Fla.App.1966, 181 So. 2d 680, 681; Tri-County Produce Distribs., Inc. v. Northeast Prod. Credit Co., Fla.App. 1963, 160 So. 2d 46, 51; Delesdernier v. O’Rourke & Warren Co., 5th Cir.1962, 305 F. 2d 929, 931; Chatlos v. McPherson, Fla.1957, 95 So. 2d 506, 509; Hull v. Maryland C…
  • Hous. Auth. OF the City OF Miami v. MacHo, 184 So. 2d 916 (Fla. 3d DCA 1966)
    …PER CURIAM. This is an interlocutory appeal from an order of sale entered in a foreclosure suit. On a prior appeal from the final decree of foreclosure this court reversed the decree in part, 181 So. 2d 680, as to a matter which did not preclude enforcement of the decree by foreclosure sale. After the filing of our mandate the chancellor entered an order for sale on a specified date, and it is that order which is now appealed. Under rule 5.12, F.A.R.…

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