United States District Court, D. Nevada
RICHARD F. BOULWARE, II UNITED STATES DISTRICT JUDGE
the Court are three contested motions: Defendant Vegas
Property Service, Inc.'s Motion for Summary Judgment, ECF
No. 28; Plaintiff Nationstar Mortgage, LLC's Motion for
Summary Judgment, ECF No. 30; and Nationstar's Motion to
Extend Time. ECF No. 33.
matter arises from a nonjudicial foreclosure sale conducted
by a homeowners' association under Nevada Revised
Statutes (“NRS”) Chapter 116. Nationstar sued
Vegas Property on February 27, 2017, alleging two claims: (1)
quiet title or declaratory judgment and (2) injunctive
relief. ECF No. 1. Nationstar alleges the foreclosure sale
could not have extinguished its interest in the property for
several reasons. Id. at 6-10. Its main allegation is
that the foreclosure sale, as conducted under Chapter 116,
violated its due process rights guaranteed by the federal and
the state constitutions. Id. at 6-8. But it also
alleges additional bases for its argument: the recorded
foreclosure notices failed to describe the super-priority
component of the homeowners' association's lien; the
homeowners' association would have rejected tender to
satisfy the super-priority lien; the foreclosure sale was
commercially unreasonable; the recorded notices provided
improper calculations of the super-priority component of the
homeowners' association's lien; and, the purchasers
at the foreclosure sale do not qualify as bona fide
purchasers. Id. at 8-10. Further, on the same day as
filing its complaint, Nationstar filed a notice of lis
pendens on the property and a certificate of interested
parties. ECF Nos. 4, 2. In the certificate of interested
parties, Nationstar certified that “there are no known
interested parties other than [Nationstar and Vegas
Property].” ECF No. 2 at 1.
Property answered the complaint and asserted a counterclaim
on March 24, 2017. ECF No. 10. In its counterclaim, Vegas
Property also seeks to quiet title or for declaratory relief
against Nationstar and against Defendant Barbara Esses.
Id. Nationstar answered the counterclaim on April 4,
2017, asserting various affirmative defenses. ECF No. 11.
Esses has not yet participated in this action. See
12, 2018, the Court stayed the matter pending a decision on a
question certified to the Nevada Supreme Court regarding the
notice requirements of Chapter 116. ECF No. 27. The Court
denied two dispositive motions without prejudice to refiling
after the certified question was resolved. Id. The
Nevada Supreme Court issued its decision in August 2018.
Property now moves for summary judgment. ECF No. 28.
Nationstar opposed the motion, and Vegas Property replied.
ECF Nos. 34, 36.
also moves for summary judgment. ECF No. 30. Vegas Property
opposed, and Nationstar replied. ECF Nos. 32, 35. Nationstar
also seeks to extend the deadline to respond to Vegas
Property's motion. ECF No. 33. The motion was fully
briefed. ECF Nos. 37, 38.
matter centers on the parties' interests in a property
located at 5710 East Tropicana Avenue, Unit 2106, Las Vegas,
Nevada 89122. Esses borrowed funds from Moneyline Lending
Services, Inc. to purchase the property in 2006 and recorded
a corresponding deed of trust on January 5, 2007. The
property sits in a community governed by a homeowners'
association. Thus, Esses was responsible for making timely
payments of the homeowners' association dues. When she
failed to do so, the homeowners' association foreclosed
on the property. The foreclosure sale occurred on November 1,
Nationstar provides evidence, consistent with that which is
required by the Nevada Supreme Court and the Ninth Circuit,
to establish that Federal National Mortgage Association
(”Fannie Mae”) purchased the loan (the promissory
note and the deed of trust) in January 2007. Fannie Mae has
owned the loan ever since. Nationstar began servicing the
loan as of May 7, 2013.
2008, Congress enacted the Housing and Economic Recovery Act
(“HERA”), 12 U.S.C. § 4511 et seq.
HERA established the Federal Housing Finance Agency
(“Agency”), an independent federal agency with
regulatory and oversight authority over Fannie ...