On October 1, 2015, new revisions took effect in Nevada’s law concerning foreclosures by homeowner’s associations (HOA’s). HOA foreclosures garnered much attention last year when the Nevada Supreme Court held in SFR Investments Pool 1, LLC v. U.S. Bank (139 Nev. Adv. Op. 75, 334 P.3d 408 ) that NRS 116.3116 created what is commonly referred to as a “super-priority lien” with certain HOA assessments, where an HOA foreclosure could extinguish a first lienholder’s secured interest in the property. Thus, an HOA foreclosure on a super-priority lien could wipe out a mortgage holder’s interest secured by a first deed of trust.
Senate Bill 306 modified NRS Chapter 116.3116 with the addition or modification of various provisions, such as the following:Read More