Matcha v. Wachs

Schulz's Arizona property, encumbered by several liens in order of priority including First National's senior mortgage, Wachs's (defendant) deed of trust, and eventually a smaller judgment lien assigned to the Matchas (plaintiffs), was sold to First National at foreclosure after Schulz's default. Junior lienholders had the right to redeem in priority order within five days after the owner's six-month redemption period; Wachs filed a timely notice of intent to redeem specifying his lien amount and priority but failed to attach the statutorily required certified copy of his lien, though he served that copy within the five-day redemption window. The Matchas sued for a declaration that Wachs forfeited his redemption right and they were entitled to redeem instead; the trial court agreed with the Matchas, but the appeals court reversed, finding Wachs substantially complied with the redemption statutes, and the Arizona Supreme Court granted review.