Renfroe v. Lakeview Loan Servicing, LLCAnnotate this Case
The provisions of Nev. Rev. Stat. 116.3116, which provides homeowners’ associations (HOAs) a superpriority lien on up to nine months of unpaid HOA dues, are not preempted by federal law when the first deed of trust on the property is insured through the Federal Housing Administration (FHA).
Homeowners bought a home using a mortgage insured through the FHA insurance program, and the promissory note and deed of trust were eventually assigned to Respondent. Homeowners’ HOA eventually initiated foreclosure proceedings pursuant to section 116.3116. Appellant purchased the property at a foreclosure sale and then filed suit to quiet title to the property. Respondent filed a motion to dismiss, arguing that the chapter 116 foreclosure sale of federal insured property was void under the federal constitution’s Supremacy Clause. The district court granted the motion. The Supreme Court reversed, holding that the district court erred in concluding that the provisions of section 116.3116 were preempted when a homeowner’s first mortgage was insured through the FHA insurance program.