¶1This was an action commenced and tried in the Randolph Circuit Court by Solomon J. Carrier against Isaac Borror and Sarah R. Borror. The complaint is in three paragraphs; the gist of the first two being to foreclose a vendor’s lien, and the third to set aside a deed from Isaac Borror to Sarah R. Borror as fraudulent.
¶2The principal facts averred in the first paragraph are, that prior to September 27, 1887, appellee was the owner of a certain eighty-acre tract of land, described, in said county of Randolph; that on said day he sold and conveyed the same to said Isaac Borror for $3,300; that when said real estate was so conveyed it was encumbered, and said Isaac Borror assumed said encumbrance and paid some cash, leaving a balance of about $1,500 of the purchase money, for which said Borror gave three promissory notes; that on October 12, 1887, Isaac and Sarah R. Borror executed a mortgage on said real estate to one Scott to secure the payment of $2,500; that said Scott sold and assigned said mortgage to one Roe, who at that time held a junior mortgage on said real estate to secure the payment of $1,100; that said Roe brought suit to foreclose said mortgages, and appellee, claiming to hold a vendor’s lien on said real estate to secure the payment of his said $1,500 of pur*357chase money, procured himself to he made a party defendant to said suit, and set up his lien by way of cross-complaint: that such proceedings were had in said cause that on July 14, 1894, the court found that said Eoe’s mortgages were the first and prior liens; that appellee held a vendor’s lien, but that it was junior to said other liens; that the amount due appellee was $1,457.89, and the liens were foreclosed, and the said real estate ordered sold to pay the sums found due; that afterward, April 13, 1895, Isaac Borror was desirous of borrowing money from one John Clayton with which to pay said judgment in favor of said Eoe, and requested appellee to release the said lien and judgment of foreclosure in his favor, that he (Borror) might mortgage the said real estate to Clayton, and promised appellee if he would do so he would execute to appellee his notes for the amount of said judgment, “which would be treated and regarded as the unpaid balance of said purchase money, and that he might retain a lien upon said real estate for the unpaid balance of purchase money,” second only to the lien of Clayton’s mortgage; that thereupon said Borror executed said notes in suit — five for $200 each; that they are due and unpaid (copies exhibited) ; that on March 18, 1898, Isaac Borror conveyed said real estate to appellant, his wife; that she paid no consideration for such conveyance; that Isaac Borror made said conveyance-“with an intention to cheat, defraud, hinder and delay the collection of said notes,” and that said appellant took said conveyance with “full knowledge of all the facts herein set out, and with full knowledge of the facts that plaintiff held said notes and that the same were executed to him for the unpaid balance of the purchase money on said real estate; that the said Isaac Borror is insolvent, and has no property subject to execution.” Prayer, demanding judgment against Isaac Borror, that a vendor’s lien be declared on said real estate, that the lien be. foreclosed and the land sold, etc.
¶3*358The second paragraph avers the ownership of the land by appellee, sale to Isaac Horror, execution of the notes for balance of purchase money, and showing original vendor’s lien as entered in connection with the foreclosure of the Roe mortgage, etc., as alleged in the first paragraph. “That afterward, to wit, on the 13th day of September, 1895, the said defendant [Isaac Horror] being unable to pay the said several amounts so found and adjudged to be due the said Roe and this plaintiff [appellee], and being unable to discharge said lands of said liens, and being desirous of obtaining a, loan of money from one John W. Clayton with which to pay the said amounts so adjudged due the said Roe, and with which to discharge the said lien so adjudged in favor of said Roe, and being desirous of securing said proposed loan by a first lien and mortgage on said lands, and being desirous for said purpose of continuing and extending the time of payment of said amount so found and adjudged due this plaintiff [appellee] as aforesaid, requested this plaintiff [appellee] to release in favor of the said Clayton his said judgment, and the lien thereof of record, in order that said defendant might procure and that said Clayton might consent to make said loan as aforesaid, ,and in order that said defendant might execute to' said Clayton said mortgage for the purposes aforesaid, which would be a first lien on said land; that said defendant [Isaac Horror] then and thereupon promised and agreed with this plaintiff [appellee] that if he would, for the purposes aforesaid, release his said judgment and lien of record, in order that said defendant [Isaac Borrar] might execute said mortgage to said Clayton for the purposes aforesaid, that the said defendant Isaac Borror would thereupon execute to plaintiff [appellee] his promissory notes as evidence of the continuation of said debt represented by said judgment, which said promissory notes should be regarded and treated as being secured,by a vendor’s lien on said real estate to the same extent and in the same manner as said *359judgment, and that this plaintiff might and would retain a vendor’s lien on said real estate, second only to said mortgage of said Clayton; that said notes should be regarded and treated as representing said unpaid balance of the purchase price of said real estate.” The paragraph then proceeds to allege the release of the judgment and the execution of the notes in suit, that they are due and unpaid, and exhibits copies of them. The paragraph sets out the conveyance to Sarah Borror, and the insolvency of Isaac Borror, as in the first paragraph, and demands judgment, etc., as in the first paragraph, except that the lien be foreclosed as to each of the defendants, etc.
¶4The third paragraph avers the execution of the notes in suit; that on the 13th day of September, 1895, Isaac Borror was the owner of seventy acres of real estate (describing it); that on said date there was a mortgage of $-on the same; that on the 19th of March, 1898, Isaac Borror conveyed said real estate to appellant, who was his wife, without any consideration having been paid by appellant or received by said Isaac; that appellant took and accepted said conveyance without paying any consideration therefor, nor has she since paid anything thei’efor, and with full notice .and knowledge of all the facts, and with full notice and knowledge that appellee so held the notes, and that they were unpaid; that Isaac had not at the time of said conveyance, nor has he since had, nor has he now, sufficient property subject to execution to pay his debts, and especially to pay appellee. Prayer, demanding judgment against Isaac Borror, and that the deed from Isaac to appellant be declared void as against the claim of appellee, and that said real estate be subject to sale, etc. Separate and several demurrers were addressed to each paragraph, for want of facts, and overruled.
¶5Appellants then answered in three paragraphs — the first a general denial. The second was to so much of the first and second paragraphs of complaint as sought to foreclose *360a vendor’s lien against the real estate described in the complaint. It admits the ownership and conveyance by the appellee of the real estate, and the encumbrances thereon, and the price to be paid for the same, the manner of payment, and the vendor’s lien held by appellee, as set up and averred in said paragraph of complaint. It is then averred that, after said conveyance described in said paragraphs of complaint, said Isaac Horror became the owner of another and additional tract, of land, to wit, the west half of the quarter section mentioned in said paragraphs of complaint; that one Roe had and held two mortgages on said entire quarter section-; that said Roe in 1894 commenced suit in the Randolph Circuit Court against said Isaac Borror and said appellant Sarah R. Borror to foreclose said mortgages on said entire quarter section; that appellee was made, on his own application, a party defendant, and filed., a cross-complaint to foreclose his vendor’s lien on the eighty-acre tract of real estate described in said paragraphs of complaint, and asked that his lien might be declared and enforced against said entire quarter section; that such proceedings -were had that on the 14th day of July, 1894, said Roe obtained a judgment of foreclosure for $3,833.80, and appellee a judgment for $1,457.89; that the court ordered and decreed that said Roe’s lien was prior and superior to the vendor’s lien of appellee, and ordered and directed that the land be sold and the proceects distributed accordingly; that said judgments and decree were never appealed from, set aside nor reversed; that, after the rendition of said judgments and decree, Isaac Borror, for a valuable consideration, conveyed the real estate described in said paragraphs of complaint to appellant Sarah R. Borror.
¶6The third paragraph of appellants’ answer sets out the same facts substantially as averred in the second paragraph, and, in addition thereto, avers that the said complaint of Roe and cross-complaint of Carrier wrere filed in the same cause and case of Roe v, Borror ci al.t and that *361there was in said case hut one judgment and decree rendered and entered by said court, and that said decree fixed the amount due each of said parties, and foreclosed the liens of each and both of said parties; that after the rendition of said judgment and decree said Roe procured the clerk of said court to issue a copy of said decree to the sheriff of said county: that thereupon said sheriff, by virtue of said decree, advertised all of said real estate for sale on gaid day, and said Roe hid therefor the full amount of his judgment, ' interest and costs in sai'd cause, and the sheriff struck off the same to said Roe, and delivered to said Roe a certificate of purchase of said real estate, and the sheriff credited said judgment and decree with the amount so bid and paid by said Roe; that afterward, to wit, September 13, 1895, appellee, in consideration of the execution of the notes in suit, satisfied of record said judgment and decree, and afterward, to wit, September 18. 1895, said Isaac Borror redeemed said real estate from said sheriff’s sale, and, after said redemption, and before the commencement of this action, said Isaac Borror, for a valuable consideration, paid by appellant Sarah R. Borror, conveyed said real estate described in said paragraphs of complaint to appellant Sarah.
¶7Appellee then demurred to the second and third paragraphs of appellant’s answer, which was sustained.
¶8This canse was submitted to the court for trial, and, at the request of appellants, special findings of fact and conclusions of law thereon were hv the court found and submitted.
¶9The facts, as found by the court, in brief, are: That on July 14, 1S94, Isaac Borror was the owner in fee of 146 acres of land; that on said clay one Roe was seeking to foreclose a mortgage on said land; that appellee was defendant and cross-complainant; that appellee was claiming a vendor’s lien on part of said land, and asking to have it foreclosed; that in said proceedings judgment was had by Ro.e foreclosing his mortgage as the first lien thereon; that ap*362pellee had judgment against Isaac Borror for the amount of his claim, and a vendor’s lien in his favor established and foreclosed as a second lien on the real estate so sold by him to Isaac Borror; that the land was ordered sold, the proceeds from sale to be applied in order of priority of claims; that on September 15, 1894-, the real estate was sold by the sheriff, on decree of foreclosure in said proceedings had, to Roe, for $3,600, which was less than Roe’s judgment, and appellee did not realize anything on his judgment from said sale; that on September 13, 1895, Isaac Borror was unable to redeem said land from said sale, and was amable to pay appellee’s judgment, but was able to borrow enough money from one Clayton to redeem from said sale if he could procure a release of appellee’s judgment, so that a mortgage to Clayton would be a first lien on the real estate, and to that end said Isaac applied to appellee, stated the facts to him, and ashed appellee to release his judgment and lien of record for the purpose aforesaid — that Clayton might have a first lien on said land; that appellee and Isaac Borror agreed that the debt evidenced by the judgment should be evidenced by five notes due one each year for five years, and that the vendor’s lien should continue on said land in favor of appellee, as it bad theretofore, to secure the payment of said notes second to the lien of the Clayton mortgage; that on said last date appellee, for the purpose of enabling said Isaac Borror to' procure said loan from said Clayton, and to redeem said land, released said judgment by entering on the order-book where said judgment was recorded the following: “For value received I hereby cancel and release and satisfy this judgment in full this 13th day of September, 1895,” and accepted the five notes now in suit as evidence of the amount due for purchase money, as aforesaid; that thereafter, and on September 13, 1895, the said Isaac Borror and his wife (appellant) sold and conveyed to one Isaac M. Borror, a son, seventy-two acres of said real estate, and with the money thus received, and the money received from *363said Clayton, all of said real estate was redeemed from said sale; that Isaac Borror continued to be the owner of the real estate described in the complaint in this action until March 19, 1.898, being the same real estate purchased from appellee by Isaac Borror September 27, 1887; that on March 19, 1898, said Isaac Borror executed to his wife a deed for the real estate in question, with the fraudulent intent and purpose of hindering, delaying and cheating' the plaintiff in the collection of the amount due on said notes, and the said Sarah took and accepted said conveyance with full notice and knowledge of the existence of plaintiff’s claim, and with full notice and knowledge of the said fraudulent purpose and intent of said Isaac Borror in the execution of the deed; that Isaac Borror was on the date of ‘ the execution of said deed, and has been continuously ever since, and now is, insolvent, and then, as now, without property subject to execution, ■ sufficient to pay his debts and appellee’s claim ; that the conveyance of said real estate was made by Isaac Borror and accepted by said Sarah R. Borror with the fraudulent intent and purpose of cheating and defrauding the appellee, and hindering and delaying him in the collection of his claim; that appellant Sarah R. Borror took and accepted said conveyance for said real estate without paying or promising to pay any valuable consideration therefor, and has' not since paid any considex*ation therefor, and both know on the date of the conveyance of the existence and nature of appellee’s claim, that it was unpaid, and represented and was a balance of the unpaid purchase money for the real estate in the complaint described ; that appellee has and holds a vendor’s lien on said real estate to secure the payment of the amount heroin found to be due. Other facts were found by the court, which it is not necessary more fully to set forth. On the facts found, the court stated its conclusions of law as follows :
“(1) That the sum of $1,550, the amount due the plain*364tiff for principal and interest and attorney’s fees, due upon his said notes, constitutes and is a lien upon said real estate conveyed to Sarah R., Borror, as set out and found in the foregoing facts, and was a lien upon and against said real estate at the time of said conveyance, and was and is a valid lien against the defendants and each of them at the time of said conveyance, and at all times since. (2) That the plaintiff is entitled to recover of and from the defendant Isaac Borror, ripon the notes sued upon in this action, the sum of $1,550, and to have and foreclose against said defendants, Tsaac and Sarah R. Borror, and each of them, and against the said real estate conveyed hy said Isaac Borror to said Sarah R. Borror, as found in the foregoing facts, a vendor’s lien for said sum. (3) That the conveyance of said real estate, as found in the foregoing facts, by the defendant Isaac Borror, to the defendant Sarah R. Borror, was and is fraudulent and void as to the plaintiff. (4) That the plaintiff is entitled to a decree against the defendants, and each of them, setting aside the said conveyance of said real estate by said defendant Isaac Borror to defendant Sarah R. Borror, as found in the foregoing facts, and to have the said real estate sold for the payment of the sum due him upon the notes in suit.” Judgment in accordance with finding of facts and conclusions of law.
¶10Appellant Sarah R. Borror, by her motion to modify the judgment, sought to eliminate that part of the judgment and decree establishing and enforcing a vendor’s lien and sale of the land. This motion was overruled. Motion by appellants for a new trial overruled. The first five and the twelfth errors here assigned by the appellants question the sufficiency of the complaint, and will be considered together.
¶11
¶12
¶13
¶14A vendee in possession of land takes it charged with an equitable lien in favor of the vendor to secure the balance of the unpaid purchase money. This rule holds good not only as against the vendee and his heirs, “but also' against all subsequent purchasers having notice that the purchase *366money remains unpaid.” It would be unconscionable to permit estates to be obtained without consideration, and equity will interfere in aid of the vendor where lie is without fault. Hiscock v. Norton (1879), 42 Mich. 320, 3 N. W. 868; Petry v. Ambrosher (1885), 100 Ind. 510; Mulley v. Karsell, supra; Beal v. Harrington (1886), 116 Ill. 113; 2 Story, Eq. Jurisp. (13th ad.), §§1219-1224; Fetter, Equity, §155; 2 Jones, Liens (2d ed), §1065. “The lien results from the transactions between the parties, and is manifested by all the circumstances attending each particular case.” Barrett v. Lewis (1886), 106 Ind. 120; Dwenger v. Branigan (1884), 95 Ind. 221.
¶15“Equity regards substance rather than form, and that as done which ought to have been done.” Otis v. Gregory (1887), 111 Ind. 504; Hawes v. Chaille (1891), 129 Ind. 435.
¶16
¶17Appellants rely on the case of Pence v. Armstrong (1884), 95 Ind. 191, in which the court incidentally refers to the case of Fishback v. Badman & Co. (1878), 14 Bush (Ky.) 117, as deciding “that a judgment for purchase money merges the equitable vendor’s lien.” We have examined the Fishbaclc case, and nowhere do we find such doctrine stated. We do find, in the reporter’s notes, as points relied on by counsel, a statement to that effect.
¶18In the case of Pence v. Armstrong, supra, the question before the court was the right of replevin bail to subrogation, and not a question between vendor and vendee as to unpaid purchase money, and no intimation by the court of *367such. The question before this court was not considered in the case of Fishback v. Bodman & Co., supra.
¶19In our judgment a foreclosure of a vendor’s lien, and sale of the property on decretal order issued on acount of such foreclosure, and not redeemed from during the year for redemption, defeats the lien as to any unsatisfied part of the judgment or debt. Yetter v. Fitts (1887), 113 Ind. 34. This is upon the theory that the purchaser at such sale is a bona fide purchaser for value. Where- a vendor prosecutes his action at law for the collection of unpaid purchase money, and causes an execution to issue on the judgment thus obtained,, and sells the land, 'he thereby will have waived his lien. Yetter v. Fitts, supra;2 Jones, Liens (2d ed.), §1016. “A vendor’s lien, having once attached, can only be defeated by the voluntary act of the holder thereof, unless the rights of innocent purchasers, without notice, intervene.” Yetter v. Fitts, supra.
¶20
¶21
¶22
¶23
¶24
¶25
¶26
¶27
¶28
¶29If we regard substance rather than form, the fact still remains that it is the same old debt for purchase money, whether in the form of a judgment, or evidenced by notes, and in either form it will be recognized and preserved by equity to prevent injustice. Eo new debt was created by the notes in suit, but the payment of the old debt was postponed, and Isaac Borror was thereby enabled to redeem his land. The averments in the answer do not overcome the allegations of the complaint as to the treatment of the judgment, and the purpose of its release, as agreed upon by Isaac Borror and appellee. Reeder v. Nay (1883), 95 Ind. 164; Boyd v. Jackson (1882), 82 Ind. 525. The demurrer to the answers was correctly sustained.
¶30
¶31
¶32
¶33
¶34The judgment of the court below is affirmed.
¶35Black, J., concurs in the result.