Nationstar Mortgage, LLC v. Ass'n of Apartment Owners of Elima Lani Condominiums
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In this foreclosure dispute, the Supreme Court held that Haw. Rev. Stat. 514B-146(n) provides a scheme for distributing rents following a lender's foreclosure against an association and that the Association of Apartment Owners of Elima Lani Condominiums (AOAO) may be entitled to all or some of the rent collected for Nationstar Mortgage, LLC in this case.
AOAO foreclosed an a unit owned by Thomas and Sarah David for failure to pay common assessments. Thereafter, Nationstar filed a complaint for foreclosure of the Davids' unit, alleging that the Davids had defaulted on their mortgage. The circuit court entered summary judgment and a decree of foreclosure in favor of Nationstar after AOAO came into possession of the unit. Nearly eleven months later after the foreclosure sale of the unit, the circuit court confirmed the foreclosure sale. Before the Supreme Court was whether AOAO was entitled to rents that accrued from the unit during the period between summary judgment and the confirmation of sale. The Supreme Court vacated the circuit court's judgment to the extent it awarded post-foreclosure rents to Nationstar and remanded for a calculation of the amount AOAO was owed from post-foreclosure units, holding that AOAO may be entitled to all or some of the rent collected for Nationstar after summary judgment.
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