CYNTHIA YOUNG, Appellant, v. KENNETH EMBLEY, Appellee., 143 P.3d 936

Summary

Without the junior lienholder's knowledge, the debtor had executed a deed of trust. This interest was later acquired by the senior lienholder. When the debtor defaulted, the junior lienholder was not allowed to cure based on her alleged interest in the property. Her attempt to set aside the foreclosure sale was unsuccessful, and she sought review. In partially reversing, the appellate court determined that deeds of trust carried the equity of redemption. However, junior lienholders were also protected under Alaska Stat. § 34.20.070(b) because the right to cure extended beyond the obligor. But, a claim of mere occupancy was insufficient. The fact that the junior lienholder did not seek a stay did not waive her rights; the senior lienholder had a duty to provide the cure figure to her under § 34.20.070(b). Moreover, the fact that statutory remedies existed did not preclude the availability of an equitable lien. However, the trial court did not err by striking the junior lienholder's jury...