U.S. Supreme Court
Finley v. Bank of the United States, 24 U.S. 11 Wheat. 304 304 (1826)
Finley v. Bank of the United States
24 U.S. (11 Wheat.) 304
Although in general all encumbrancers must be made parties to a bill of foreclosure, yet where a decree of foreclosure and sale was made and executed at the suit of a subsequent mortgagee and with the consent of the mortgagor, it not appearing to the court that there was any prior encumbrance, the proceedings will not be set aside upon the application of the mortgagor in order to let in the prior mortgagee who ought regularly to have been made a party unless it be necessary to prevent irremediable mischief.
Quaere whether such a practice be admissible in any case.
But in such a case, the prior encumbrancers are not bound by the decree in a suit to which they are not made parties, and the purchasers under the sale take subject to the prior liens.