References in periodicals archive ?
In Part III, we learned that where a junior lienor purchases the land at a foreclosure of a senior mortgage, normal priority rules govern and the purchaser takes title free and clear of the interests of the holder of the equity of redemption and other junior interests.
In Part II of this article we discovered that when the holder of the equity of redemption directly or indirectly purchases at either a mortgage sale or tax sale, survival or revival of junior liens and other junior interests is the norm.
The foregoing right to 'pay late' became known as the mortgagor's equity of redemption.
When this occurs, the transferee becomes the new holder of the equity of redemption.
Leffingwell, Annotation, Right of Mortgagor or Purchaser of Equity of Redemption to Defeat Lien of Mortgage by Acquisition of Title at Sale Subsequent to Mortgage for Nonpayment of Taxes, or of Assessment for Local Improvement, 134 A.
However, unless a mortgagee who purchases at a foreclosure sale knows or suspects that former holder of the equity of redemption will likely attempt later to repurchase the land from it, it certainly acquired the title as a BFP.
The claim of the foreclosed mortgagor or the owner of the equity of redemption normally is junior to those of all valid liens wiped out by the foreclosure").
Where this is the case and the assuming junior lienor purchases at the foreclosure sale of the senior lien, it would inequitable to hold that the mortgagor's equity of redemption has been terminated.
c (1997): a purchase by a junior lienor or other junior interest at a validly conducted foreclosure of a senior lien cuts off the rights of both the holder of the equity of redemption and other junior interests as well.