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 summary judgment. Read the article………….
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 they have a fairly “thick skin.” Read the article…………..
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 New Builds, LLC v. Bank of America, followed a trial in which Bank of America […]
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 why the deed of trust in a particular case survived the sale. One such defense […]
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. Read the article………….
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 to recover assessments categorized as super priority amounts Read the article……….
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………….
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. Read the article………….
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 Mae, Freddie Mac, and lenders embroiled in quiet title cases with purchasers from HOA foreclosure […]
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 deed of trust. As addressed in our prior blog posts, those shockwaves continue to reverberate […]
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 upon nonjudicially. These issues were decided in the affirmative in SFR Investments Pool 1 v. […]
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. Read the article…………
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 that […]
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 liens on properties where the FHFA is acting as conservator. Read the article………….
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 a true […]
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 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 wrote about the SFR Investments Pool I, LLC v. U.S. Bank, 130 Nev. Adv. Op. […]
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 courts in […]
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 the amount of the superprioirty owed the HOA, it paid the full amount demanded by […]
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 over a first deed of trust, meaning that the foreclosure of that lien could extinguish […]
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 the underlying suit. Red more………
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” is not always straightforward. For example, most ethical dilemmas in the workplace are not simply […]
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 property at a homeowner association’s foreclosure sale. The decision in SFR Investments comes on the […]
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 mortgages to assure the protection of the federal program against loss, state law notwithstanding. […]
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 statutes. Read more……….
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 assessments took priority of position over other liens, including a lender’s mortgage lien. Read that […]
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 of the community association. While this case is based on interpretation of Nevada law, it […]
From Good to Great: Principles for Community Association Success
Every community has its own history, personality, attributes and challenges, but all associations share common characteristics and core principles. Good associations preserve the character of their communities, protect property values and meet the established expectations of homeowners. Great associations also cultivate a true sense of community, promote active homeowner involvement and create a culture of […]
New legislation does harm to HOAs (NV)
I’ve have often thought that there should be a sign above the door as you enter the state Legislative Building in Carson City that reads, “Do no harm.” It was always my thinking that state legislators should be trying to make our lives better. Then I read Barbara Holland’s homeowners association column (“HOA law to […]
How will recent laws affect HOAs? (Nevada)
This is the first of a four-part series of articles pertaining to the new Nevada Revised Statutes homeowner association laws that were passed by the legislature in July. Read more…..
NV: Higher dues for homeowners at stake in HOA legislation
Anyone living in a homeowners’ association in Nevada might want to pay attention to the next few weeks at the Legislature. Read More……
So Now You’re On the Board
The first steps to superior board performance are clarifying your board’s job and then following through with appropriate plans, actions and evaluation of results. The checklists presented here are intended to assist you in those tasks. They cover a significant number of your responsibilities. The checklists will apply to virtually any association. To use them, […]