Opinion ID: 2575774
Heading Depth: 1
Heading Rank: 3

Heading: Right of Redemption as Remedy

Text: K.S.A. 60-2414 governs the redemption of real property. Beneficial argues that it was a creditor entitled to redeem as defined in K.S.A. 60-2414(c), and that it was not required to attempt foreclosure of its interest or to reduce the interest to judgment in order to preserve that right under K.S.A. 60-2414(b). The Coxes do not discuss K.S.A. 60-2414, arguing only that K.S.A. 60-2415 prevented the district court from allowing a redemption or any other equitable remedy once the sale was confirmed. The majority of the Court of Appeals' panel held that a junior mortgage holder's failure to foreclose its mortgage in a proceeding initiated by a senior mortgagee extinguishes the junior mortgagee's right to redeem the property. Alliance, 33 Kan. App. 2d at 452-53. Judge Johnson dissented, focusing on the plain language of K.S.A. 60-2414, which entitles any creditor to redeem if its claim is or becomes a lien prior to the expiration of the time allowed by law for the redemption by creditors. K.S.A. 60-2414(c). In the opinion of Judge Johnson, Beneficial qualified as such a creditor with a valid lien, as recognized by the district court in the foreclosure proceeding. It therefore had standing to redeem under K.S.A. 60-2414(c). Alliance, 33 Kan. App. 2d at 459. We need not settle this disagreement in this case. Assuming arguendo that Beneficial had a right of redemption, there is no dispute between the parties before us that any such right had expired by the time the district court attempted to extend it. We also think it plain that the correct remedy for the denial of Beneficial's statutory and due process notice of the sheriff's sale was not a revived right of redemption but set-aside of the sale, provision of adequate notice, and a new sale with all parties and the public free to participate or not participate as they see fit. Contrary to the statement of the Court of Appeals' majority, the Coxes did not have an absolute right to have the sale to them confirmed as long as it was for an adequate purchase price. See K.S.A. 60-2415; Alliance, 33 Kan. App. 2d at 444. Although such sales will not be set aside absent a substantive or procedural irregularity, see K.S.A. 60-2415 and Liberty Savings & Loan Ass'n v. Hanson, 145 Kan. 174, 64 P.2d 609 (1937), insufficient notice to Beneficial in violation of statute and due process constituted such an irregularity. The judgment of the Court of Appeals is affirmed in part and reversed in part. The judgment of the district court is affirmed in part, reversed in part, and the case is remanded to the district court for further proceedings consistent with this opinion. LOCKETT, J., Retired, assigned. [1]