Rush v. Alaska Mortgage Group

OPINION

EASTAUGH, Justice.

1. INTRODUCTION

Linda Sue Rush entered into a real estate transaction that inadvertently extinguished her senior security interest in the land. As a result, Alaska Mortgage Group, which held the second deed of trust, became the senior lienholder. We must decide whether equitable subrogation restores the priority of Rush’s security interest. The superior court ruled against her and granted summary judgment to Alaska Mortgage Group, Gerry DePriest, and Maryanne DePriest. We reverse and remand.

II. FACTS AND PROCEEDINGS

In April 1976 Edward Cyrus Rush sold approximately 8.9…