Nevada vs Wells Fargo Foreclosures in question

[Jeff B.]

Bloomberg is reporting challenges to nonjudicial foreclosures in Nevada.

At issue is can an HOA foreclosure wipe out a bank loan.

A court conflict testing some Nevada mortgage holdings of Wells Fargo and other major banks affected by homeowners’ association liens may be headed to the U.S. Supreme Court ( Bourne Valley Court Tr. v. Wells Fargo Bank N.A. , U.S., 16-cv-01208, petition filed 4/3/17 ).

At issue is a Nevada law that allows a foreclosure by a homeowners’ association (HOA) to wipe out even first mortgages, as long as the HOA’s action is based on unpaid HOA fees over the previous nine months.

Courts have clashed over the law in two important cases that both involve Wells Fargo. Last year, the U.S. Court of Appeals for the Ninth Circuit said the statute is unconstitutional, but in January, the Nevada Supreme Court disagreed and said the statute passes muster.

see the Bloomberg link for details.