Opinion ID: 901052
Heading Depth: 2
Heading Rank: 1

Heading: Compliance with the Redemption Act

Text: [¶ 14.] Under the Redemption Act, Dacotah Bank, as the holder of a mortgage lien in the property junior to Bank of America (the plaintiff in the underlying mortgage foreclosure action) was entitled to redeem the property purchased by Hubbel at the sheriff's sale. SDCL 21-49-33. Any attempted redemption by Dacotah Bank must meet the substantive requirements of the Redemption Act, specifically SDCL 21-49-34, which states: Such persons may redeem from the purchaser by paying the person making the sale the amount of the purchase price, plus any sums paid by the purchaser to protect his interest in such property in particular, but not in limitation thereof, for such items as taxes, insurance, maintenance expenses reasonably incurred to preserve the value of the mortgaged premises, or payments on a superior lien, together with interest on the total judgment at the same rate of interest as provided in the mortgage. [¶ 15.] In this case, Hubbel was served with Dacotah Bank's notice of redemption, together with a check in the amount of $83,127.36 on January 3, 2002, just six days after the sheriff's certificate of sale was issued. This check represents all amounts of which Dacotah Bank had notice since prior to redemption, Hubbel had not recorded with the Register of Deeds or notified the Minnehaha County Sheriff or Dacotah Bank of any additional payments she had made to protect her interest in the property. The parties agreed in their joint stipulation of facts that Dacotah Bank was under no statutory obligation to contact Hubbel prior to attempting redemption to determine what, if any, payments she had made to protect her interest in the property. [¶ 16.] Although the trial court held that Dacotah Bank substantially complied with the Redemption Act, we hold Dacotah Bank did, in fact, actually comply with the Redemption Act in January 2002. By serving Hubbel with its notice of redemption along with a check for the purchase price and any sums paid by the purchaser to protect her interest in the property of which Dacotah Bank had notice, Dacotah Bank actually complied with the Redemption Act. Dacotah Bank paid all expenses of Hubbel of which it had notice, and we do not impose any additional responsibility upon Dacotah Bank to make further inquiry in order for redemption to be effective. This is of course subject to the proviso that Dacotah Bank reimburse Hubbel for any amounts reasonably expended to protect her interest in the property see SDCL 21-49-34 that are brought to the Bank's attention after initiating redemption. [1]