United States District Court, D. Nevada
DITECH FINANCIAL LLC and FEDERAL NATIONAL MORTGAGE ASSOCIATION, Plaintiffs
PARADISE SPRINGS ONE HOMEOWNERS ASSOCIATION; NEVADA ASSOCIATION SERVICES, INC.; ROBERT C. WANG; and ANNABEL E. BARBER, Defendants
ORDER GRANTING PLAINTIFFS' MOTION FOR SUMMARY
JUDGMENT AND DENYING DEFENDANT PARADISE SPRINGS ONE
HOMEOWNERS ASSOCIATION'S MOTION FOR SUMMARY JUDGMENT [ECF
NOS. 42, 43]
P. GORDON UNITED STATES DISTRICT JUDGE.
Ditech Financial LLC (Ditech) and Federal National Mortgage
Association (Fannie Mae) brought this suit to determine
whether a deed of trust still encumbers property located at
5462 Birchbrook Court in Las Vegas following a foreclosure
sale conducted by defendant Paradise Springs One Homeowners
Association (Paradise). Paradise moves for summary judgment,
arguing Ditech and Fannie Mae's claims are untimely,
Paradise followed all statutory requirements, Ditech lacks
standing, and the sale did not violate due process.
Defendants Robert Wang and Annabel Barber join the motion.
and Fannie Mae oppose Paradise's motion and also move for
summary judgment. They argue that because Fannie Mae owned
the note and deed of trust at the time of the foreclosure
sale, the sale could not have extinguished Fannie Mae's
interest under the federal foreclosure bar. Alternatively,
they argue the sale violated their due process rights, they
extinguished the superpriority lien by offering to pay the
superpriority amount, and the sale should be equitably set
and Fannie Mae have standing, Paradise has not shown I should
reconsider Judge Mahan's prior ruling that the remaining
claims are timely, and the federal foreclosure bar applies. I
therefore grant Ditech and Fannie Mae's motion and deny
August 2003, former homeowner Emily Razzano obtained a loan
in the amount of $175, 000 and executed a deed of trust to
secure the loan. ECF Nos. 42-1; 42-5 at 4. The deed of trust
was recorded in early September 2003. ECF No. 42-1. That same
month, Fannie Mae acquired ownership of the loan and the deed
of trust and has remained the owner ever since. ECF Nos. 42-2
at 3; 42-5 at 6. In May 2012, Bank of America, N.A. was
Fannie Mae's servicer on the loan. ECF Nos. 42-2 at 4;
42-5 at 6. A year later, the loan servicing rights were
transferred to Ditech. ECF Nos. 42-2 at 4; 42-5 at 7.
September 2011, Paradise, acting through its agent defendant
Nevada Association Services, Inc. (NAS), recorded a notice of
delinquent assessment lien because Razzano had failed to pay
her homeowners association (HOA) assessments. ECF No. 42-8.
Paradise subsequently recorded a notice of default and
election to sell and a notice of foreclosure sale. ECF Nos.
42-9; 42-10. Paradise purchased the property for $9, 280.67
at the HOA foreclosure sale held on May 4, 2012. ECF No.
42-11. In August 2015, Paradise quitclaimed the property to
Wang and Barber. ECF No. 42-12.
and Fannie Mae filed this lawsuit against Paradise, NAS,
Wang, and Barber, seeking to quiet title and obtain
declarations that the deed of trust still encumbers the
property following the HOA foreclosure sale or that the sale
be set aside. Ditech and Fannie Mae also asserted two claims
seeking money damages against Paradise and NAS: breach of
Nevada Revised Statutes § 116.1113 and wrongful
moved to dismiss the damages claims as time-barred and to
dismiss the quiet title and declaratory relief claims on the
merits. ECF No. 7. Judge Mahan, who previously presided over
this case, dismissed the two damages claims but denied the
motion as to the declaratory relief and quiet title claims.
ECF No. 19. Although Paradise did not move to dismiss those
claims on statute of limitations grounds, Judge Mahan
identified the claims as ones brought pursuant to Nevada
Revised Statutes § 40.010. Id. He stated that
those claims are governed by a five-year limitation period,
and thus are timely. Id. He also rejected
Paradise's arguments to dismiss the quiet title and
declaratory relief claims on the merits. Id.
Wang and Barber subsequently filed an answer and crossclaims
against Paradise and NAS. ECF No. 22. Judge Mahan dismissed
the crossclaims without prejudice. ECF No. 31. Wang and
Barber have not moved to amend their crossclaims.
never appeared in this action. Ditech and Fannie Mae moved
for entry of clerk's default, which was entered on April
11, 2017. ECF Nos. 27, 28.
the remaining claims in this action are Ditech and Fannie
Mae's declaratory relief and quiet title claims. Both
sides now move for summary judgment. For the reasons set
forth below, I grant Ditech and Fannie Mae's motion for
summary judgment and deny Paradise's motion.
judgment is appropriate if the movant shows “there is
no genuine dispute as to any material fact and the movant is
entitled to judgment as a matter of law.” Fed.R.Civ.P.
56(a), (c). A fact is material if it “might affect the
outcome of the suit under the governing law.”
Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248
(1986). An issue is genuine if ...