Opinion ID: 1425716
Heading Depth: 1
Heading Rank: 6

Heading: ineffectiveness of credit union's transfer to sooner as against the prior purchaser for value at a regular judicial sale

Text: As a subordinate mortgagee, Credit Union had taken title to the property in question subject to Sooner's first mortgage and without assuming it. It hence incurred no personal obligation. One who purchases another person's equity by buying the land subject to a mortgage, does not become personally liable for the mortgage debt. [17] The liability of Credit Union to Sooner was solely in rem. A judgment in rem creates no personal liability but operates only on the property that is the subject of litigation. [18] Personal liability for the mortgage debt in suit was imposable only on Bailey as principal obligor and on Thomas as Bailey's surety. A purchaser who assumes the mortgage obligation becomes the principal debtor, while the original mortgagor then occupies the position of a surety. [19] Sooner's cancellation of Credit Union's mortgage debt was nothing more than an idle act in an illusory transaction. Credit Union bore no in personam liability on any mortgage to Sooner. It was not amenable to a deficiency judgment. [20] Sooner thus parted with no consideration, suffered no detriment and conferred no benefit upon Credit Union. In short, by its acquisition of Credit Union's redemptive rights Sooner became a nudum pactum transferee. Nudum pactum is a gratuitous promise  one unsupported by any sufficient legal consideration. [21] Credit Union's gratuitous promise failed to give Sooner a position different from that it had occupied as a foreclosing lender.