Court: |
NM Supreme Court |
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Facts: |
Vendees had a land contract for purchase of a house. It has a
strict foreclosure option. They miss a payment, and the vendors
exercise the clause. Vendees ofer to pay the entire balance, with
interest, costs, and attorney fees, but the vendors refuse. |
|
Posture: |
Vendees sue, asking the court to create an equitable mortgage.
Lower court denies. Appeal. |
|
Issue: |
Is this an equitable mortgage, so that vendees would have an
equity of redemption? |
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Holding: |
No. The court isn't going to rewrite the contract. |
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Rule: |
We enforce contracts as written. |
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Reasoning: |
There's no inequity here: it was a fair contract, in accordance
with normal rules, and they got to live in the house for cheap
for almost 6 years. Land contracts require very minimal
down-payments, and the cost for that is that you don't get
the same kinds of protection you do with a mortgage. The
fact that strict foreclosure was optional doesn't convert
this into a mortgage. |
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Dicta: |
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