This summary was computer-generated without any editorial revision. It is not official, has not been checked for accuracy, and is NOT citable.
Facts
A mortgage foreclosure action was initiated by a bank against a mortgagor and several junior lienholders. Following the foreclosure sale, two junior lienholders sought to redeem the property under New Mexico's redemption statute. The dispute centered on whether the assignee of a junior lienholder could redeem, whether a judicial sale purchaser had a superior redemption right, and the proper calculation of the redemption amount (paras 1-4).
Procedural History
- District Court, February 5, 1993: Entered a stipulated judgment, decree of foreclosure, and order of sale, reducing the redemption period to one month (para 2).
- District Court, March 25, 1993: Confirmed the judicial sale of the property to one of the junior lienholders (para 3).
- District Court, October 26, 1993: Granted summary judgment in favor of the other junior lienholder, allowing redemption (para 4).
Parties' Submissions
- Appellant (Defendant): Argued that the redemption statute does not permit redemption by the assignee of a junior lienholder, that her status as judicial sale purchaser gave her a superior redemption right, and that the trial court erred in calculating the redemption amount (paras 5, 11, 26).
- Appellee (Plaintiff-in-Redemption): Contended that the redemption statute allows assignees of junior lienholders to redeem and that the appellant failed to properly redeem the property within the statutory period (paras 7, 23).
Legal Issues
- Does New Mexico's redemption statute permit redemption by the assignee of a junior lienholder?
- Does a judicial sale purchaser have a superior right of redemption over other junior lienholders?
- Did the trial court err in calculating the redemption amount?
Disposition
- The Court of Appeals affirmed the trial court's rulings on the first two issues and remanded the case for a hearing on the proper calculation of the redemption amount (para 1).
Reasons
Per Minzner J. (Donnelly and Hartz JJ. concurring):
Redemption by Assignee: The court held that the redemption statute allows assignees of junior lienholders to redeem, as the term "lienholder" includes anyone holding a lien, regardless of how it was acquired. The court also noted that other jurisdictions and prior New Mexico cases implicitly support this interpretation (paras 7-9).
Judicial Sale Purchaser's Redemption Right: The court rejected the appellant's argument that her purchase at the judicial sale extinguished other redemption rights. It found no evidence that her interests as a lienholder and purchaser merged, and she failed to properly redeem the property within the statutory period (paras 13-25).
Redemption Amount: The court agreed that the trial court erred by not holding a hearing to determine the proper redemption amount. It clarified that the appellant is entitled to additional interest, reimbursement for taxes, and potentially insurance premiums if deemed necessary to preserve the property (paras 26-32).
Concurrence by Hartz J.:
Hartz J. concurred fully but urged the legislature to clarify the redemption statute, particularly regarding successive redemptions and the priority of redemption rights, to reduce litigation and provide clearer guidance (paras 35-38).