Given the significant role Fannie Mae and Freddie Mac have in the national housing market, it is unsurprising that both have become embroiled in the Nevada HOA super-priority lien litigation. Since July 2008 well before the Nevada Supreme Court held that an HOA's foreclosure on its super-priority lien could extinguish a first deed of trust […]
Homeowners' associations have a more robust tool for forcing mortgage lenders to pay delinquent assessments following a September 14 decision by the Nevada Supreme Court. Nevada HOAs have enjoyed a super-priority lien under NRS 116.3116 for nine months of unpaid assessments preceding institution of foreclosure proceedings, in addition to certain charges for maintenance and nuisance […]
The Ninth Circuit sent shockwaves through the mortgage industry when it held that NRS 116 – the statute allowing an HOA to impose a nominal super-priority lien that can extinguish a senior deed of trust when foreclosed – was facially unconstitutional under the Due Process Clause in Bourne Valley Court Trust v. Wells Fargo Bank, […]
In October 2014, we blogged about cases from Nevada and D.C. giving priority of so-called HOA “superliens” over first position mortgages. In a 2-1 decision, the United States Court of Appeals for the Ninth Circuit overruled the 2014 decision from the Nevada Supreme Court about which that, as a matter of lien priority, the foreclosure […]
In December 2015, the Rhode Island Supreme Court issued an opinion holding that Rhode Island's Uniform Condominium Act provides a true “super-priority” lien to condominium owner associations when a condominium owner is delinquent in paying the COA assessments. This super-priority lien – applicable to condo association liens only – takes priority over a lender's first […]
Benjamin Franklin once said, “By failing to prepare, you prepare to fail.” Servicers can face significant obstacles in preservation of their rights vis a vis assessments by homeowners' associations and condo associations . Foreclosure News