Frank Archambault Fortescue and his wife, Lois Fortescue, were adjudicated bankrupts on July 23, 1953. Among the assets of the Fortescues at the time of their adjudication was a house and lot of ground at 7448 Devon Street, Philadelphia. They acquired title to the property by a deed which was dated, delivered and recorded on December 1, 1952. When they acquired title to the property on December 1, 1952, they paid the purchase price of $ 16,000, (a) by borrowing $ 10,000 from, and giving to, the Germantown Federal Savings and Loan Association a first mortgage on the property in that amount, which was dated, delivered and recorded on that day, (b) by borrowing $ 3,000 from Paul E. Schlechter on a judgment note in the sum of $ 3,000, which was dated and delivered on December 1, 1952, and (c) by applying $ 3,000 of their own money toward the purchase price.
It was understood between the Fortescues and Schlechter that Schlechter would enter judgment on his judgment note after the Germantown Federal Savings and Loan Association mortgage was recorded, so that the Schlechter judgment would be a lien against the Fortescue property subject in priority to the Germantown Federal Savings and Loan Association mortgage.
Schlechter forgot to enter judgment on his judgment note. Thereafter other judgments were entered against the Fortescues as follows:
February 5, 1953, Household Consumer Discount Co. $ 1,200.00
May 14, 1953, Land Title Bank & Trust Co. 918.00
July 1, 1953, Gimbel Brothers 858.79
July 10,1953, Ritter Finance Co. 300.00