Las Vegas Home with HOA Lien

[Jay De Guzman]

Hi! I purchased a contract in North Las Vegas, and have run into a bit of an issue. The property has an HOA lien (which I knew about) but I am trying to get clarification on the law. Has anyone dealt with this recently? My understanding is the HOA lien takes first position, and the current first mortgage is wiped out once the HOA is paid off. Now if the home has transferred title already through a quitclaim, and the HOA was never paid off, if the HOA is paid now what will happen to the first? Also how will the quiet title action work? Thank you for your help!

[Wayne Brooks]

Originally posted by @Jay De Guzman:

Originally posted by @Omar Merced:

Jay, have you done the title work yet? I'm pretty sure your title person can elaborate on your lien. Just a thought.

Hi Omar, I did do a prelim and the issue was the lien holder. The person we purchased the home from intern purchased it from an investor. The HOA lien, and the mortgages are recorded on the property and the borrower is the owner before the investor. (I know!) What I don't understand is how the HOA and the first lien holder can foreclose if the property has been transferred! The title report does reflect all of this.

 It's quite simple.....the property is the security for the loan.  It doesn't matter if the owner transfers title, that does not affect the lender's right to foreclose on the home for non payment.  The ortgage being reorder, is public notice to the world that the mortgage is attached to the house.

Is there any equity after the hoa lien and mortgage are accounted for?