Lenders Appeal Court Decision

Lenders Appeal Court Decision
Allowing HOAs to Extinguish Mortgages: Several mortgage lenders have asked the Nevada Supreme Court to reverse a decision it made in September that a homeowners association's (HOA) super priority lien can extinguish a first deed of trust nonjudicially on a residential property. Last month's ruling, which was issued by only a 4-3 majority, has only caused more debate in Nevada between mortgage lenders and housing investors over whether or not HOAs should have the right to extinguish a lender's mortgage on a foreclosed property without going through the courts. The ruling allows HOAs to legally foreclose on a property that is delinquent on dues payments and auction off the title to the property without the involvement of the lender or courts, read more.