SFR INVESTMENTS POOL 1, LLC, A NEVADA LIMITED LIABILITY COMPANY, Appellant,
FIRST HORIZON HOME LOANS, A DIVISION OF FIRST TENNESSEE BANK, N.A., A NATIONAL ASSOCIATION, Respondent.
from summary judgment in an action to quiet title. Eighth
Judicial District Court, Clark County; Gloria Sturman, Judge.
Gilbert Ebron and Howard C. Kim, Diana S. Cline Ebron, and
Jacqueline A. Gilbert, Las Vegas, for Appellant.
Akerman LLP and Ariel E. Stern, Melanie D. Morgan, and Brett
M. Coombs, Las Vegas, for Respondent.
THE COURT EN BANC.
dispute seeks clarification of how the notice provisions of
NRS 116.31162 apply amidst competing foreclosure sales by a
bank and a homeowner's association. Two days after Silver
Springs Homeowner's Association recorded a notice of
foreclosure sale, First Horizon Home Loans recorded its own
notice of foreclosure sale. First Horizon was the first to
hold its foreclosure sale and bought the property on a credit
bid. However, before First Horizon recorded its trustee's
deed, Silver Springs held its own foreclosure sale, at which
SFR Investments purchased the same property. SFR Investments
then filed suit against First Horizon to quiet title.
parties filed motions for summary judgment. The district
court granted First Horizon's motion, finding that Silver
Springs' foreclosure sale was invalid because Silver
Springs had not provided the statutorily required notices
pursuant to NRS 116.31162 and NRS 116.311635. Because NRS
116.31162 requires a homeowner's association
("HOA") foreclosing on its interest to record its
notice of foreclosure sale, we conclude that any subsequent
buyer purchases the property subject to that notice that a
foreclosure may be imminent. Therefore, an HOA need not
restart the entire foreclosure process each time the property
changes ownership so long as the HOA has provided the
required notices to all parties who are entitled.
Accordingly, the district court erred in finding Silver
Springs' foreclosure sale invalid, and we reverse the
resulting entry of summary judgment.
former homeowner in this matter purchased the subject
property for approximately $140, 000, having financed the
property with a loan from First Horizon Home Loans and
executed a deed of trust in favor of First Horizon. The
property was part of a planned unit development governed by
Silver Springs Homeowner's Association.
2011, the homeowner became delinquent on both her mortgage
and her HOA dues. Silver Springs tendered a notice of
delinquent assessment lien and on April 20, 2012, recorded a
notice of default and election to sell. Silver Springs then
recorded a notice of foreclosure sale on February 5, 2013.
Both the notice of default and the notice of foreclosure sale
were mailed to First Horizon in its capacity as mortgagee.
First Horizon does not dispute that it received the notices
in its capacity as mortgagee and was aware
of the delinquent assessments. Nevertheless, on October 30,
2012, First Horizon recorded its own notice of default and
election to sell, and on February 7, 2013, two days after
Silver Springs recorded its notice of foreclosure sale, First
Horizon recorded its own notice of foreclosure sale.
Horizon completed the foreclosure sale with respect to First
Horizon's deed of trust on February 26, 2013. First
Horizon purchased the property for a credit bid of $151,
283.09, and recorded the deed on March 7, 2013. One day
before First Horizon recorded its deed, Silver Springs
conducted the foreclosure sale with respect to its
superpriority HOA lien. Appellant SFR Investments Pool 1,
LLC, purchased the property for $7, 000, and on March 18,
2013, SFR recorded its deed.
filed suit against First Horizon to quiet title, and both
parties moved for summary judgment. The district court granted
First Horizon's motion for summary judgment and denied
SFR's cross-motion. The district court determined that
Silver Springs failed to provide First Horizon, in its
capacity as owner, with copies of the notice of
delinquent assessment, notice of default, and notice of sale,
as required by NRS 116.31162 and NRS 116.311635. Furthermore,
the district court found that Silver Springs failed to comply
with its own CC&Rs, which required the HOA to provide an
owner with 30 days' written notice prior to any
foreclosure. Accordingly, the district court deemed Silver
Springs' foreclosure sale void and entered summary
judgment in favor of First Horizon.
review a district court's grant of summary judgment de
novo. Wood v. Safeway, Inc.,121 Nev. 724, 729, 121
P.3d 1026, 1029 (2005). Summary judgment is appropriate when,
viewed in the light most favorable to the nonmoving party,
the pleadings and other evidence on file demonstrate that
there is no genuine issue of ...