Here is the scenario:
Idaho homeowner lost his 500 ac subdivision project in judicial foreclosure. Foreclosing creditor/bank became purchaser of all lots and the redemption price was set for each lot individually. Second lienholder (project developer/manager) was named on the judgement as a debtor and became a redemptioneer. Judgement debtor/homeowner redeemed one of the lots (30 ac homesite). Certificate of Redemption was recorded along with new private mortgage and the property was deeded into a trust. Junior lienholder made no efforts to redeem from the purchaser to secure his position. Redemption period has expired and Junior lienholder now wants to sue and foreclose on the 30 ac homesite
question 1: Idaho Redemption law doesn’t mention that junior lien would revive if the property is redeemed. Has this junior lien revived when the property was redeemed?
question 2: If this junior lien did revive, can this creditor sue and foreclose on the 30 ac parcel for the entire amount that originally encumbered the whole 500 ac subdivision? This creditor didn’t exercise his option to redeem any of the 30 lots and now wants to foreclose on 1 lot (redeemed by homeowner). The original lien was for some $350k and it encumbered 30 lots (500 ac). Is it fair to asume that 29/30 of the lien was wiped out when redemption period expired?
Ironically, this junior lien holder was the project partner/developer/manager who mismanaged the project. There was never any money transfered between the homeowner and this creditor. Homeowner denies existence of this debt. Both loans/liens had brutal terms and were designed for failure. Homeowner had no clue what he had signed. What would be the best course of action to prevent this potential subsequent foreclosure on the horizon?