AI Generated Opinion Summaries

This summary was computer-generated without any editorial revision. It is not official, has not been checked for accuracy, and is NOT citable.

Facts

• Nationstar Mortgage LLC initiated a foreclosure action against the property owners, the Chenoweths, and various junior lienholders. The Mobleys, acting through Cody Mobley, successfully bid on the property at a special master’s sale and were conveyed the property subject to a one-month right of redemption. The Chenoweths assigned their first priority right of redemption to the Mobleys, who filed the assignment with the district court but did not record it with the county clerk until over seven months later. ARSNM assigned its junior lien on the property to TAL Realty, which filed a petition for redemption in the district court the first business day after the redemption period expired and deposited the required funds. The Mobleys argued they had exercised their redemption rights by filing the assignment with the district court within the redemption period (paras 2-4).

Procedural History

• [Not applicable or not found]

Parties' Submissions

• Petitioner-Appellant (TAL Realty, Inc.): Argued that the Mobleys did not timely exercise their redemption right because they failed to record the assignment evidencing the redemption with the county clerk’s office within the one-month redemption period as required by law.
• Respondents-Appellees (The Mobleys): Contended that they exercised the right of redemption by filing the Chenoweths’ assignment of their first priority right of redemption with the district court within the one-month redemption period and that they had substantially complied with the redemption process (paras 4-6).

Legal Issues

• Whether the assignees of the first priority right of redemption, who were also the foreclosure sale purchasers, timely exercised their redemption right by not recording the assignment with the county clerk’s office within the one-month redemption period.
• Whether TAL Realty was divested of its right to appeal when it withdrew the funds it deposited in the district court’s registry (paras 1, 9).

Disposition

• The Court of Appeals affirmed the district court’s entry of judgment against TAL Realty, holding that the Mobleys were not required to record the assignment evidencing their redemption with the county clerk’s office within the one-month redemption period to timely exercise their redemption right (para 23).

Reasons

• The Court, led by Chief Judge Linda M. Vanzi with Judges J. Miles Hanisee and Daniel J. Gallegos concurring, reasoned that TAL Realty had a right to appeal despite withdrawing funds from the court registry after the district court’s final judgment. The Court distinguished between the exercise of a redemption right and the duty to record, finding no statutory requirement that recording with the county clerk was necessary within the redemption period to exercise the redemption right. The Court concluded that the Mobleys’ actions, including filing the assignment in the district court and later recording it with the county clerk, fulfilled the spirit of the redemption law by providing notice to potential redemptioners. Thus, the Mobleys were not required to record the instrument evidencing their redemption within the one-month redemption period as a matter of law (paras 9-22).