Saticoy Bay v Wells Fargo: Nevada Supreme Court Hears Case on Real Estate Crisis Foreclosure Sales
“Because the invalidated provisions have been effective for 25 years, the panel’s decision could adversely affect hundreds of HOAs and call into question thousands of foreclosures, which could cloud property titles and undermine the stability and vitality of Nevada’s real estate markets.”
Nevada Supreme Court Hears Case on Real Estate Crisis Foreclosure Sales
CARSON CITY — A case that could affect the validity of thousands of Las Vegas foreclosure sales stemming from the real estate crisis that began nearly a decade ago was heard Thursday by the Nevada Supreme Court.
The court is now expected to rule on the question of the constitutionality of the nonjudicial foreclosure process used by investors and speculators to acquire homes at a fraction of their value by paying off liens held by homeowners associations.
The Nevada Supreme Court had previously ruled that paying off the super-priority lien held by an HOA extinguishes all other pre-existing liens, including the original mortgage.
The case heard by the court Thursday involved a home acquired by Saticoy Bay LLC Series 350 Durango 104 for $6,900 in back association dues and related costs in 2013. The foreclosure sale by the HOA Angel Point Condominiums came when the original owners fell behind on their association dues.