SFR Investments Pool 1, LLC v. U.S. Bank, N.A.
Supreme Court of Nevada
334 P.3d 408 (2014)
After the owners of a home in a common-interest community defaulted on both their mortgage to U.S. Bank (defendant) and their HOA dues to the Southern Highlands Community Association (SHHOA), SHHOA conducted a nonjudicial trustee's sale at which SFR Investments Pool 1 (plaintiff) purchased the property, claiming this sale extinguished the bank's earlier deed of trust under Nevada's UCIOA superpriority-lien statute covering up to nine months of delinquent dues; when the bank planned its own separate foreclosure sale, SFR sued to stop it. The trial court denied SFR's preliminary injunction and dismissed its claims, ruling the UCIOA required SHHOA to foreclose judicially rather than nonjudicially, and SFR appealed.
Whether, under the Uniform Common Interest Ownership Act, a homeowners' association's superpriority over all other liens on a property is a true priority lien in that its foreclosure extinguishes a first deed of trust on the property.