Nevada Supreme Court Gives Fannie, Freddie A Win in HOA Super-Priority Lien Case
July 20, 2017
In a recent ruling, the Nevada Supreme Court decided that in the case of Nationstar Mortgage, LLC v. SFR Investments Pool 1, LLC, a homeowner’s association priority lien cannot extinguish a first deed of trust in an HOA foreclosure sale. This is a win for Fannie Mae and Freddie Mac. Twenty-two states have super-lien laws that allow HOAs to take priority over first mortgages and foreclose the property to collect unpaid fees of up to six months’ worth. In 2014, the Nevada Supreme Court ruled that an HOA could indeed extinguish a senior mortgage. But Nationstar Mortgage argued...
The creation of a U.S. sovereign wealth fund could grease the skids for an end to the conservatorships of Fannie Mae and Freddie Mac.
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