Sourcecorp, Inc. v. Norcutt

OPINION

BALES, Justice.

¶ 1 Dean and Stacey Norcutt bought a home for cash and satisfied the existing first mortgage. They later discovered the home was also subject to a judgment lien far exceeding the property’s value. We hold that the purchasers were equitably subrogated to the mortgage lien’s priority for the amount they paid to satisfy the mortgage.

I

¶ 2 In September 2004, Sourcecorp, Incorporated obtained a judgment exceeding $3 million against Steven and Rita Shill, who owned residential property in Prescott. The property was subject to a first mortgage in favor of Zions National Bank…