United States District Court, D. Nevada
BANK OF AMERICA, N.A., FEDERAL NATIONAL MORTGAGE ASSOCIATION, Plaintiff,
MADEIRA CANYON HOMEOWNERS ASSOCATION SFR INVESTMENTS POOL 1, LLC NEVADA ASSOCIATION SERVICES, INC, Defendants.
RICHARD F. BOULWARE, II UNITED STATES DISTRICT JUDGE
the Court are Plaintiffs Bank of America, N.A
(“BANA”) and Federal National Mortgage
Association's (“Fannie Mae”) Motion for
Partial Summary Judgment, and Defendant SFR Investments Pool
1, LLC's (“SFR”) Motion for Summary Judgment.
ECF Nos. 36, 44. For the following reasons, the Court denies
BANA and Fannie Mae's Motion for Partial Summary Judgment
and grants SFR's Motion for Summary Judgment.
and Fannie Mae sued Defendants Madeira Canyon Homeowners
Association (“the HOA”), SFR Investments Pool 1,
LLC (“SFR”) and Nevada Association Services, Inc.
(“NAS”) on May 10, 2016. ECF No. 1. Plaintiffs
seek declaratory relief that a nonjudicial foreclosure sale
conducted in 2013 under Chapter 116 of the Nevada Revised
Statutes (“NRS”) did not extinguish Fannie
Mae's interest in a Las Vegas property. Id. To
obtain the relief, Plaintiffs assert the following claims in
the Complaint: (1) declaratory relief under 28 U.S.C. §
2201 against SFR; (2) quiet title against SFR; (3) breach of
NRS 116.1113 as against the HOA and NAS; (4) wrongful
foreclosure against the HOA and NAS; and (5) injunctive
relief against SFR. Id. NAS answered the complaint
on June 3, 2016. ECF No. 7. On August 25, 2016, the Court
administratively stayed the case pending the mandate of
Bourne Valley Court Trust v. Wells Fargo Bank. 832
F.3d 1154 (9th Cir. 2016), cert denied 137 S.Ct.
2296 (2017) . On April 8, 2019, the Court lifted the stay.
ECF No. 30. SFR filed its answer on July 2, 2019. ECF No. 38.
24, 2019, Plaintiffs moved for summary judgment. ECF No. 36.
The motion was fully briefed. ECF Nos. 46, 48. SFR also moved
for summary judgment. ECF No. 44. That motion was also fully
briefed. ECF Nos. 45, 49.
Court makes the following findings of undisputed and disputed
matter concerns a nonjudicial foreclosure on a property
located at 2673 Rimbaud Street, Henderson, Nevada 89044 (the
“property”). The property sits in a community
governed by the HOA. The HOA requires the community members
to pay community dues.
Ronaldo A. Bumbasi borrowed funds from Pulte Mortgage LLC to
purchase the property in 2006. To obtain the loan, Bumbasi
executed a promissory note and a corresponding deed of trust
to secure repayment of the note. The deed of trust, which
lists Bumbasi as the borrower, Pulte Mortgage LLC as the
lender, Lawyers Title of Nevada as the original trustee, and
Mortgage Electronic Registration Systems, Inc.
(“MERS”) as the original beneficiary was recorded
on November 30, 2006. MERS substituted nonparty Recontrust
Company as trustee under the deed of trust as recorded on
October 2, 2008. On July 12, 2010 MERS assigned the Senior
Deed of Trust to BAC Home Loans Servicing, LP fka Countrywide
Home Loans Servicing.
failed to pay the required HOA dues or his required loan
payments. On October 16, 2008, a notice of default and
election to sell under deed of trust was recorded. The notice
stated that MERS, as beneficiary of record, had executed and
delivered to Recontrust Company a written declaration of
default and demand for sale, based on Bumbasi's
“failure to pay the installment of principal, interest
and impound which became due on 07/01/2008” and
“does hereby declare all sums secured thereby
immediately due and payable.” On November 5, 2010, a
rescission of election to declare default was recorded that
stated as follows:
“Recontrust Company, N.A., acting as an agent . . .
does hereby rescind, cancel and withdraw the Notice of
Default and Election to Sell . . . provided however, that
this rescission shall not be construed as waiving, curing,
extending to, or affecting any default, either past, present
or future . . . and it . . . shall be deemed . . .only an
election without prejudice not to cause a sale to be
September 10, 2009 through March 2013, a notice of delinquent
assessment lien, a notice of default and election to sell,
and a notice of foreclosure sale were all recorded by the
HOA. On May 10, 2013 SFR purchased the property for $18, 000.
On June 4, 2019, a second notice of rescission of notice of
default and election to sell under deed of trust was
recorded. This rescission notice provided that the present
beneficiary “does hereby rescind, cancel, withdraw and
revoke without prejudice the acceleration of the Note, or
Deed of Trust, or both, as referenced in ...