Murphy v. Farwell
Supreme Court of Wisconsin
9 Wis. 102 (1859)
A property carried two mortgages, with Murphy (plaintiff) holding the second; the first mortgagee foreclosed without notifying Murphy, and Farwell (defendant) bought the property at that foreclosure sale. Around the same time, Murphy separately foreclosed on his second mortgage and bought the property at his own foreclosure sale, without notifying either the first mortgagee or Farwell. Murphy then sued, tendering payment to Farwell to redeem the property from the first foreclosure sale, but Farwell argued his own right to redeem was superior; the trial court ruled Farwell owned the property, subject to Farwell's own right to pay off the second mortgage, and Murphy appealed.
Whether the fact that a second mortgagee was not a party to foreclosure proceedings under the first mortgage prevents the mortgagor's entire interest from transferring to the first mortgagee's buyer through that foreclosure sale.