Gough v. Home Owners' Loan Corporation, 3893.

• Decision Date: 23 November 1939
• Docket Number: No. 3893.,3893.
• Citation: 135 S.W.2d 771
• Parties: GOUGH et ux. v. HOME OWNERS' LOAN CORPORATION.
• Court: Texas Court of Appeals

135 S.W.2d 771

GOUGH et ux. v. HOME OWNERS' LOAN CORPORATION.

No. 3893.

Court of Civil Appeals of Texas. El Paso.

November 23, 1939.

Rehearing Denied January 4, 1940.

Appeal from District Court, El Paso County; P. R. Price, Judge.

Action by Home Owners' Loan Corporation against John Thomas Gough and wife involving title to an undivided one-fourth interest in two lots. From a judgment for plaintiff, defendants appeal.

Affirmed.

John T. Hill, of El Paso, for appellants.

Isaacks & Lattner, of El Paso (S. J. Isaacks, of El Paso, of counsel), for appellee.

This action involves the title to an undivided one-fourth interest in two lots in the City of El Paso. Upon trial without a jury judgment was rendered in favor of Home Owners' Loan Corporation, the plaintiff, against the defendants, John T. Gough and wife. For many years prior to July 19, 1912, Thomas J. Gough and Jannie Gough were husband and wife. On the date mentioned the husband died. February 15, 1913, the owners of the lots conveyed same to Jannie Gough. The property was paid for with funds belonging to the community estate of the said Jannie Gough and her deceased husband. On December 11, 1931, Jannie Gough conveyed the lots, in trust, to a trustee to secure the City Mortgage Company in the payment of a certain note in its favor executed by the said Jannie Gough for borrowed money. In May, 1934, said Company assigned said indebtedness and lien to the Home Owners' Loan Corporation, and on May 11, 1934, Jannie Gough executed a deed of trust upon the lots securing the payment of her note to said Corporation, which note was a renewal of the indebtedness of Jannie Gough to the City Mortgage Company theretofore assigned to said Corporation. On July 6, 1937, Jannie Gough conveyed the lots to her son Pat F. Gough, who assumed the payment of the indebtedness to the Home Owners' Loan Corporation. Thereafter Mrs. Gough died. Thereafter the deed of trust in favor of the Home Owners' Loan Corporation was foreclosed by a sale made by the substitute trustee, as authorized by the terms of the deed of trust. At the foreclosure sale the property was purchased by said Corporation and the trustee conveyed the same to it.

From the trial court's findings we quote as follows:

"For some time prior to the 15th day of February, 1913, Mrs. Jannie Gough and her husband actually lived on said property as a home, and after her husband's death she continued to occupy same as her home until her death, which was prior to the execution of the power of sale in said deed of trust given for the benefit of the Home Owners' Loan Corporation. * * * Neither the Home Owners' Loan Corporation at the time it advanced the money to take over the indebtedness due the City Mortgage Company, nor the City Mortgage Company at the time it loaned the money to Mrs. Jannie Gough, had notice that the property in controversy was paid for with community funds. The possession of Mr. and Mrs. Gough of the property prior to Mr. Gough's death in 1912 was insufficient to charge the City Mortgage Company with notice that community funds had been used in acquiring the property. The mere fact that at the time Mrs. Gough acquired the property, she was a widow, is insufficient to charge the City Mortgage Company or the plaintiff with notice that community funds had been used in acquiring same. The possession and use of the property at the time the loan was made by the City Mortgage Company was entirely consistent...