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Ninth Circuit Issued Ruling in Bourne Valley Court Trust v. Wells Fargo Bank, NA (NV)

Last week, the Ninth Circuit held, in Bourne Valley Court Trust v. Wells Fargo Bank, NA that Nevada’s super-lien priority statute, NRS § 116.310, prior to certain amendments enacted in 2015, was facially unconstitutional.  Nev. Rev. Stat. 116.3116 establishes that

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Nevada Supreme Court Strikes Significant Blow Against HOA Super-Priority Foreclosure-Sale Purchasers

In September 2014, the Nevada Supreme Court held that an HOA could foreclose on its nominal super-priority lien and extinguish a senior mortgage in SFR Investments Pool 1, LLC v. U.S. Bank, N.A., a ruling that initially seemed cataclysmic to

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Nevada Fed. Court Denies Class Cert. on ‘Ascertainability’ Grounds, Confirms Fannie/Freddie Liens Not Extinguished by HOA Foreclosure

The U.S. District Court for the District of Nevada recently confirmed that a homeowner association’s foreclosure of its superpriority lien cannot extinguish a property interest of Fannie Mae or Freddie Mac while those entities are under the Federal Housing Finance

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Nevada Supreme Court Accepts Certified Question in HOA Lien Litigation Case – Should the SFR Decision Apply Retroactively?

We previously reported on the Nevada Supreme Court’s decision in SFR Investments Pool 1, LLC. v. U.S. Bank, N.A., holding that a homeowners association (HOA) lien is a true super-priority lien that upon foreclosure extinguishes a first deed of trust.

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Nevada Supreme Court Clarifies Limits to its SFR Investments Decision

On June 22, 2016, in Wells Fargo Bank, N.A. v. Premier One Holdings, Inc., the Nevada Supreme Court rejected this argument, clarified that SFR Investments has limitations, and reversed and remanded a district court’s order granting a purchaser’s motion for

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Tips if being on a homeowners associations board

There are lots of homeowners associations in our valley and I am sometimes asked what legal issues those considering a run for the HOA board should be aware of. I first ask them if they have the time and if

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Nevada District Judge Voids HOA Foreclosure Following Evidence that HOA Hindered Bank’s Efforts to Preserve its Mortgage

Nevada Eighth Judicial District Judge Elizabeth Gonzales has voided a 2014 homeowners association (HOA) foreclosure sale and ruled that a first mortgage held by Bank of America, N.A. was unaffected by the sale. The April 20, 2016 ruling in Nevada

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Reading the Nevada Tea Leaves after Shadow Wood

In the wake of SFR Investments Pool 1, LLC v. U.S. Bank, N.A., in which the Nevada Supreme Court held that an HOA foreclosure sale may extinguish a first position deed of trust, lenders have advanced numerous arguments as to

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Nevada Supreme Court Holds that Foreclosure Of HOA Lien Extinguishes Equal Priority HOA Lien.

In Nevada’s master-planned communities it is common for one home to be in multiple homeowners’ associations. In such cases there is generally a master association for the master-planned community and then sub-associations for specific developments within the master-planned community.  

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In the ‘Shadow Wood’ of SFR: Nevada Supreme Court Weighs in on Lender HOA Challenges

In a September 2014 ruling, the Nevada Supreme Court jolted the lending community by holding that a homeowners association’s (HOA) non-judicial foreclosure sale can extinguish a mortgage lender’s previously-recorded first deed of trust on a property if that foreclosure is

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Nevada Supreme Court Opinion Impacts HOA Foreclosure Litigation

The Nevada Supreme Court held in SFR Investments Pool 1, LLC. v. U.S. Bank, N.A. that a non-judicial foreclosure by an HOA generally extinguishes a first mortgage interest, however, it left several unresolved issues.   Read the article………….

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New HOA Decision by Nevada Supreme Court Indicates Continued Litigation to Save First Liens

On January 28, 2016, the Nevada Supreme Court issued another HOA-related opinion that could have provided much needed clarity to the pending litigation, especially with respect to the issue of what charges constitute the HOA’s “assessment lien” under Nevada law.

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Nevada State Court Ruling on Application of HERA to HOA Foreclosure Sales Holds Promise for Lenders and GSEs

The first Nevada state court ruling on the federal Housing and Economic Recovery Act (HERA) holds that a deed of trust owned by a GSE cannot be extinguished by a homeowners’ association’s (HOA) foreclosure sale, a promising development for Fannie

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Pros and Cons of Buying a Planned Community Home

Buying a home? Thinking about a planned community? From the iconic Levittown in New York to Playa Vista in Los Angeles, planned communities feature both benefits and drawbacks.   Read the article…………..

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Latest Salvo in the Ongoing Nevada HOA Dispute

The Nevada Supreme Court recently sent shockwaves through the mortgage lending industry when it issued its opinion in SFR Investments Pool 1, LLC v. U.S. Bank, N.A., holding that the foreclosure of an HOA lien could extinguish a prior-recorded first

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HOAs, Super Priority Liens, and Foreclosures Life After SFR Investments v. US Bank

Recently, the Nevada Supreme Court tackled two critical issues: First, whether a homeowners’ association (“HOA”) is a super priority lien on a property for up to 9 months of unpaid HOA dues; and second, whether such lien can be foreclosed

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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

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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

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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).

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Nevada federal court holds FHFA must consent to HOA ‘super-priority lien’ foreclosures

The U.S. District Court for the District of Nevada recently held that the federal Housing Economic Recovery Act of 2008 (HERA) requires super-priority lien holders to obtain consent from the Federal Housing Finance Agency (FHFA) prior to foreclosing on any

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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

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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

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Nevada Senate Passes Bill Affecting Super-Priority Liens in Foreclosure

The Nevada Legislature recently passed a bill intended, in part, to address issues resulting from the Nevada Supreme Court’s decision that a homeowners association lien is a true super-priority lien that, if foreclosed, extinguishes a first deed of trust. We

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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

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Nevada Supreme Court holds that Voluntary Payment Doctrine Prohibits a Party from Recovering Amounts Wrongly Paid to Homeowner’s Association in Order to Prevent Foreclosure

In Nevada Association Services, Inc., v. The Eighth Judicial District Court, 130 Nev. Adv. Op. 94 (Dec. 4, 2014) (“NAS”), the purchaser of several properties at foreclosure sales did exactly what the Nevada Supreme Court suggested in SFR: it determined

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Can First Deeds of Trust Survive an HOA Foreclosure in Wake of the SFR Investments Decision (NV)?

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

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Insurer On The Hook To Defend Faulty Construction Claims

A federal judge on Friday ruled that North American Capacity Insurance Co. must defend a contractor against faulty construction claims lodged by a Nevada homeowners’ association, finding that two exclusion clauses in a general liability policy do not apply to

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CAI Best Practices: Ethics

Simply put, when someone is employing ethics, he or she recognizes what is right and what is wrong and is choosing to do the right thing; however, as a great deal of business ethics literature will attest, “the right thing”

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Arbitrator Restored for Vegas Condo Dispute

An arbitrator’s flirtation with “high-value” litigation investment did not warrant his removal from a dispute over luxury Las Vegas condominiums, the 9th Circuit ruled Tuesday.   Read more………

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HOA liens are first in line

On September 18, 2014, the Supreme Court of Nevada issued its decision in SFR Investments Pool 1, LLC v. U.S. Bank,1 in which the court considered the competing priorities of the holder of a first lien and the purchaser of

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Nevada district court bars foreclosure sale of first lien HUD-insured mortgage

Recently, a federal district court held that a homeowners association (HOA) foreclosure sale is not valid against HUD-insured loans. The District Court noted that the Ninth Circuit has held that federal rather than state law applies in cases involving FHA-insured

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Nevada Supreme Court Clarifies Right to Construction Defect Remedies Involving Residential Units with Previously Occupied Spaces

In Oxbow Constr., LLC v. Eight Judicial Dist. Ct., 2014 Nev. LEXIS 109, 130 Nev. Adv. Rep. 86 (Nev. Oct. 16, 2014), the Nevada Supreme Court considered issues regarding class-action certification and the availability of remedies under Nevada construction defect

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Class Analysis Not Needed in Construction-Defect Case

The Nevada Supreme Court has ruled it neither arbitrary nor capricious for a trial judge to decline to perform a class-action analysis in a lawsuit filed by a homeowners’ association against a general contactor over alleged defects.     Read more…….

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Nevada and D.C. Courts Give Priority of Position to HOA Assessment “Superliens” Over First Mortgages

In late August, the D.C. Court of Appeals rendered a decision in Chase Plaza Condominium Association, Inc. v. J.P. Morgan Chase Bank, N.A., CA-5826-10 (August 28, 2014) determining that a homeowner’s association’s (HOA’s) statutory “super-priority” lien, or superlien, for unpaid

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CAI’s Guide to FHA Certification

The U.S. Department of Housing and Urban Development (HUD) Federal Housing Administration (FHA) plays a major in role in housing finance through its Condominium Mortgage Insurance Program. FHA issued regulatory guidance to set standards condominium associations must meet for a

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Court Ruling May Result in Property Tax on Previously Exempt Community Association Property (NV)

A recent Nevada Supreme Court decision suggests that community association common areas may be subject to property tax based upon the value of common area improvements, even if the underlying land is effectively valueless because it is encumbered by restrictions

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Residential Disclosure Guide June 2014 Changes

The Nevada “Residential Disclosure Guide” is amended. It can be viewed on line by clicking here. Changes in the current revision of the booklet pertain to the Common-interest Communities and Condominium Hotels disclosures. Pay special attention to Statement of Demand.

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What Happens in Vegas Stays in Vegas, Unless it is a Discrimination Claim

Now that I have your attention, while this article may not be about gambling or wild parties on the strip of Las Vegas, it is about an interesting discrimination claim involving a homeowners association and one of its members.  

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HOA Crime Insurance can be misleading (NV)

Crime insurance is a relatively new requirement, added to NRS 116 in 2011. While perhaps not as complex as other insurance categories, crime insurance is easy to misunderstand as the title is misleading.   Read more…….

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What HOA fiduciary means to you

No single word encompasses what a Board Member is, or what a Board Member should be, more than the word “fiduciary”. The word is thrown around a lot in the HOA world; I know I’ve mentioned it in many articles

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HOA New Year’s Resolutions

As one year ends and another begins, positive changes and improvement tend to be popular themes around this time. The New Year is a good time to develop or reinforce good habits for your Community and the Board of Directors.

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