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Court of Appeals rules that Nevada HOA liens do not supersede first mortgages Older version of state's laws ruled unconstitutional KEYWORDS Ballard Spahr HOA Skiptracing sites HOA liens HOA super liens HOA Super Priority Liens Homeowners' association Nevada Nevada Housing super priority lien Mortgage lenders and investors needn’t worry about whether a homeowners’ association super lien will be given priority over a first mortgage in the state of Nevada, at least for now. According to an alert published Monday by Ballard Spahr, the Ninth Circuit Court Appeals ruled last week that an older version of Nevada’s laws, which previously gave super-priority status to HOA liens, is unconstitutional. In a 2-1 decision, the Ninth Circuit overruled a 2014 decision from the Nevada Supreme Court, which held that foreclosure of a super lien for HOA assessments can Skiptrace Pro extinguish a first mortgage. But one portion of the state’s laws that the Nevada Supreme Court did not address is whether supposed junior lienholders, including mortgagees, were required to be notified in the event of a super lien foreclosure. Specifically, the ruling deals with an older version of Nevada law that was amended by the Nevada state legislature in 2015. Under the older Nevada law, homeowners’ associations were only required to notify lenders of a foreclosure if the lender requested to be notified. In 2015, the Nevada state legislature changed the state’s laws to require notice of foreclosure to be given to all junior lienholders. But the case in question deals with the pre-2015 version of the law, which did not make it mandatory to give notice to junior lienholders, which according to the Ninth Circuit is a violation of the Constitution. And according to the attorney’s at Ballard Spahr, the impact of the ruling could be significant. Nevada Revised Statutes section 116.3116 et seq. strips a mortgage lender of its first deed of trust when a homeowners’ association forecloses on the property based on delinquent HOA dues.

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