Opinion ID: 2626405
Heading Depth: 4
Heading Rank: 2

Heading: Redemption of deeds of trust

Text: We treat deeds of trust as identical to mortgages in almost all respects. [25] In Brand, we stated: A deed of trust is `a mortgage in effect,' being only a somewhat different device for accomplishing the same purpose, creating a security interest in land. . . . [A] deed of trust does not move title out of the trustor, but only creates a lien. [26] Because mortgages and deeds of trust are virtually identical, and because mortgages carry the equity of redemption, we conclude that deeds of trust also carry the equity of redemption. In contrast to mortgages, however, there is no statutory post-sale redemption available under a deed of trust unless the deed of trust so provides. [27] Instead of post-sale redemption, AS 34.20.070(b) provides a statutory right of cure under a deed of trust. The statute states that foreclosure may be forestalled by payment of arrearages, costs and attorney's fees. [28] Equitable redemption traditionally requires the payment of the full amount of debt owed in order to clear the property of the previous encumbrance. If only a portion of the debt is in default, however, then that portion can be redeemed separately with the consent of the obligee. [29] Alaska Statute 34.20.070(b) forces the lender to accept partial payments when a deed of trust is in default. The crux of this case is to determine from whom the lender must accept those payments.