Harry F. Euge and Harvey F. Euge v. Arthur

Action in equity to set aside a foreclosure sale and the trustee's deed executed pursuant thereto. The property involved is a lot located at 5529 South Broadway, St. Louis, Missouri, upon which is located ""an old filling station building."" Plaintiffs are father (Harry F. Euge) and son (Harvey F. Euge) and they were partners in the ownership of various parcels of real estate including the one heretofore mentioned. Defendant Kenneth A. Blase was the trustee in the deed of trust and his father, defendant Arthur F. C. Blase, was the owner of the note secured by said deed of trust at the time of the foreclosure sale. The trustee's deed conveyed the property to defendant Anita Wellborn but it is admitted that she was holding the title for Arthur, the real purchaser at said sale. A trial of the case resulted in a finding for defendants and judgment was entered dismissing the amended petition of plaintiffs. Plaintiffs have duly appealed. Early in October 1954 a deed of trust on certain property of plaintiffs located on Eighth Street in St. Louis was in the process of foreclosure. Arthur Blase was in the business of making real estate loans. One of the plaintiffs received a form letter from Arthur Blase suggesting that he might be able to refinance the obligation and thus save the property from foreclosure. In response to that letter plaintiffs contacted Arthur and as a result of conferences and negotiations Arthur made or arranged for the loan in question. At that time there was a first deed of trust upon the South Broadway property in the original amount of $3,500. The loan made by Arthur was secured by a second deed of trust upon the Broadway Street property and described a note dated October 11, 1954, in the sum of $1,000 payable in monthly installments of $40 principal, and accrued interest. With the proceeds of that loan plaintiffs were able to pay the past due installments on the Eighth Street mortgage and to stop foreclosure sale thereon.