Searching over 5,500,000 cases.


searching
Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.

Bank of America, N.A. v. Sagecreek Homeowners Association

United States District Court, D. Nevada

July 24, 2019

BANK OF AMERICA, N.A., Plaintiff,
v.
SAGECREEK HOMEOWNERS ASSOCIATION, et al., Defendants.

          ORDER

          KENT J. DAWSON, UNITED STATES DISTRICT JUDGE

         Before the Court is plaintiff/counterdefendant Bank of America's motion for partial summary judgment (#51) to which defendant/counterclaimant SFR Investments Pool 1, LLC responded (#54), and Bank of America replied (#55). Defendant/counterclaimant SFR Investments Pool 1, LLC has also moved for summary judgment (#52). Bank of America responded (#53), and SFR Investments replied (#56).

         Also before the Court is Bank of America's motion to file supplemental authority in light of the Nevada Supreme Court's decision in Bank of America, N.A. v. Thomas Jessup, LLC Series VII, 435 P.3d 1217 (Nev. 2019). (#57). SFR Investments opposed the motion (#58), and Bank of America has replied (#59).

         This is a dispute over whether a non-judicial foreclosure extinguished Bank of America's deed of trust on a property located at 1063 Country Skies Avenue in Las Vegas, Nevada. SFR Investments purchased the property at auction after Sagecreek foreclosed on its delinquent-assessment lien. SFR Investments argues that it owns the property free and clear because Sagecreek's foreclosure extinguished Bank of America's deed of trust. Bank of America, on the other hand, claims that its deed of trust survived Sagecreek's foreclosure because the bank satisfied the association's superpriority lien by attempting to tender payment.

         Although the bank never actually sent a check, its tender is excused because Sagecreek made clear that it would reject such a payment. As a result, Sagecreek's foreclosure did not extinguish Bank of America's deed of trust on the property. That deed of trust continues to encumber the property, and SFR Investments purchased the property subject to the bank's interest. Accordingly, the Court grants Bank of America's motion for partial summary judgment (#51) and denies SFR Investments' competing motion for summary judgment (#52) inasmuch as it seeks to quiet title against Bank of America.

         I. Background

         In April of 2009, cross-defendants Erik and Lauralee Novy refinanced their mortgage on the Country Skies property. Paramount Mortgage financed the loan, and the Federal Housing Administration (FHA) insured the loan. Pl.'s Mot. Summ. J. Ex. A, ECF No. 51. The loan amount was $140, 248, which was secured by a deed of trust against the property. Id In February of 2012, Paramount Mortgage assigned its senior deed of trust to Bank of America. Pl.'s Mot Summ. J. Ex. C, ECF No. 51. The property was part of the Sagecreek Homeowners Association and subject to the association's Covenants, Conditions, and Restrictions (“CC&Rs”). The CC&Rs required the Novys to pay monthly assessments for maintenance and other common community upkeep.

         At some point, the Novys fell behind on their mortgage and association obligations. That caused Sagecreek to initiate foreclosure proceedings against the Novys. Sagecreek used defendant Absolute Collection Services, LLC to record the foreclosure liens and notices. Absolute Collection Services recorded a notice of delinquent assessment lien against the property on July 31, 2012. Id at Ex. D. That lien identified a total delinquency of $1, 037.36. Id Neither the Novys nor Bank of America satisfied the delinquency, and Sagecreek recorded a notice of trustee's sale the following February. Id at Ex. I. The trustee's sale was scheduled for April 16, 2013. Id

         Prior to the sale, Bank of America retained law firm Miles, Bauer, Bergstrom & Winters LLP to ascertain and satisfy the superpriority lien on the property. Miles Bauer contacted Absolute Collection and offered to pay the outstanding lien balance if Absolute Collection would disclose what that balance was. Id at Ex. G 2. Miles Bauer's letter stated:

It is unclear . . . what amount the nine months' of common assessments . . . actually are. That amount, whatever it is, is the amount BAN A should be required to rightfully pay to fully discharge its obligations to the HOA per NRS 116.3102 and my client hereby offers to pay that sum upon presentation of adequate proof of the same by the HOA.

Id (emphasis added). Collection Manager, Kelly Mitchell, responded to Miles Bauer's letter but refused to disclose the outstanding balance. Instead, Mitchell stated that it was Absolute Collection's view that “without the action of foreclosure, a 9 month Statement of Account [was] not valid.” Id at Ex. H. Mitchell's response also confirmed Absolute Collection's intent to proceed with its foreclosure despite not disclosing the outstanding delinquent balance to the bank. Id Without knowing the amount of the outstanding balance, Bank of America did not send a check. Absolute Collection proceeded to foreclosure on July 16, 2013. It sold the home to SFR Investments for $15, 000. Id at Ex. J.

         Bank of America then brought this suit seeking to quiet title and seeking a declaration that its deed of trust survived Sagecreek's nonjudicial foreclosure. See Compl., ECF No. 1. The bank brought four total causes of action: a quiet title and declaratory relief claim against SFR Investments, a claim for an injunction against SFR Investments, a claim for wrongful foreclosure against Sagecreek and Absolute Collection, and a claim for breach of NRS § 116 against Sagecreek and Absolute Collection. Id SFR Investments answered the complaint. It counterclaimed for quiet title and declaratory relief against the bank and crossclaimed for quiet title and declaratory relief against the Novys.

         Like many other foreclosure cases in this district, the case was then stayed for a time pending the outcome of related cases at the Ninth Circuit and Nevada Supreme Court. The Court lifted the stay in October of 2018. Order Lifting Stay, ECF No. 48. Bank of America moved for partial summary judgment on its quiet title and declaratory relief claims against SFR Investments. Pl.'s Mot. Summ. J., ECF No. 51. The bank has not moved for judgment on its claims against Sagecreek or Absolute Collection. In response, SFR Investments cross-moved for summary judgment on its own quiet title and declaratory relief claims against Bank of America and the Novys.

         II. L ...


Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.