In an effort to “avoid the cost and burden of piecemeal litigation” of hundreds of cases in the Nevada HOA foreclosure crisis, the Federal Housing Finance Agency (FHFA), Fannie Mae, and Freddie Mac (collectively, “Plaintiffs”) recently filed a putative class action and motion to certify a defensive class, pursuant to Rule 28 (b)(2) and
HOA Super Priority Liens
Constitutional Clarification for Nevada HOA Super-Priority Foreclosures
Since the Nevada Supreme Court’s infamous decision in SFR Investments Pool 1, LLC v. U.S. Bank, N.A. in September 2014, the mortgage community has continued to fight to save senior deeds of trust from extinguishment due to an HOA’s foreclosure of its super-priority lien. Numerous arguments are currently being raised by the mortgage community,…
Lenders’ New Right to Redeem after Nevada HOA Foreclosure Sales
Beginning October 1, 2015, lenders in Nevada will have a much-needed right to redeem properties sold at homeowners association (HOA) foreclosure sales for pennies on the dollar. Specifically, lenders and homeowners will have 60 days to redeem properties sold at HOA foreclosure sales—enabling lenders to recoup properties securing hefty deeds-of-trust. Nevada Senate Bill 306, signed…
Nevada HOA Super-Priority Lien Statute Preempted by Federal Law, Holds U.S. District Court
On Monday, the U.S. District Court for Nevada issued significant decisions in three cases, holding that a foreclosure on a Nevada HOA’s super-priority lien could not extinguish a deed of trust securing a debt owned by a Government-Sponsored Enterprise (GSE). As previously noted on this blog, Chief Judge Navarro ruled a few weeks ago…
Notice Me: The New Notice Requirements for HOA Lien Foreclosures in Nevada
In a previous blog post, we reported on Senate Bill 306, passed by Nevada Governor Brian Sandoval on May 28, 2015. The legislation redresses the substantial harm caused by SFR Investments Pool 1, LLC v. U.S. Bank, N.A. In SFR Investments, the Nevada Supreme Court held that a homeowners association (HOA) lien is…
Nevada HOA Foreclosures Cannot Extinguish Deeds of Trust Held by Fannie Mae, Holds U.S. District Court
Yesterday, the U.S. District Court for the District of Nevada issued an important ruling concerning the litigation over whether homeowners’ association foreclosures under Nevada’s super-priority lien statute (NRS 116.3116) can extinguish first deeds of trust when the underlying indebtedness is owned by a Government-Sponsored Enterprise (GSE) like Federal National Mortgage Association (Fannie Mae) or Federal…
Nevada Passes HOA Super Priority Lien Fix
On May 28, 2015, Nevada Governor Brian Sandoval signed into law Senate Bill 306, which will fundamentally alter the HOA foreclosure sale landscape in Nevada. Following the Nevada Supreme Court’s decision in September 2014 in SFR Investments Pool 1, LLC v. U.S. Bank (holding that NRS 116.3116 was a true priority lien and an…
Nevada Court Decisions on HOA Foreclosure Crisis Muddy the Waters
Since September 2014, the lending industry has been scrambling to understand and reconcile the Nevada Supreme Court decision in SFR Investments Pool 1, LLC v. U.S. Bank, N.A., a decision that could potentially wash away billions of dollars of first lien interests across the state. However, recent decisions from the state and federal…
Can First Deeds of Trust Survive an HOA Foreclosure in Wake of the SFR Investments Decision?
In September 2014, the Nevada Supreme Court, in SFR Investments Pool 1, LLC v. U.S. Bank, N.A., 334 P.3d 408 (Nev. Sep. 18, 2014), held that a portion of a homeowners’ association lien for delinquent assessments has true super-priority status over a first deed of trust, meaning that the foreclosure of that lien could…