U.S. Bank, National Ass'n ND v. Resources Group, LLC

In this homeowner's association (HOA) lien foreclosure dispute the Supreme Court vacated the judgment of the district court holding that a lien foreclosure sale extinguished the first deed of trust and quieting title in favor of the foreclosure sale buyer's successor, holding that a remand was required to determine whether, given a notice defect, the first deed of trust holder deserved relief from the sale.

The HOA in this case did not give the first deed of trust holder the notice of default required by Nevada law to foreclose a superpriority lien. The district court quieted title in favor of the foreclosure sale buyer's successor despite the HOA's failure, finding that the first deed of trust holder was not entitled to notice at the address specified in the deed of trust. The Supreme Court reversed, holding (1) the district court erred when it ruled that the first deed of trust holder was not entitled to notice of default because it had not requested it; (2) the failure to mail the first deed of trust holder the notice of default at the address given for it in the recorded deed of trust violated Nev. Rev. Stat. 116.31168 and Nev. Rev. Stat. 107.090(3); and (3) the district court erred in finding that the foreclosure sale buyer was a bona fide purchaser for value.