Berezovsky v. Moniz

Nevada statute giving super-priority lien to homeowners’ associations for non-payment of dues is pre-empted by federal Housing and Economic Recovery Act, so HOA liens cannot trump Freddie Mac’s secured interest.  The federal Housing and Economic Recovery Act 12 USC 4517(j)(3) provides that  “[n]o property of the [FHFA] shall be subject to levy, attachment, garnishment, foreclosure, or sale without the consent of the [FHFA], nor shall any involuntary lien attach to the property of the [FHFA].”  This provision preempts Nevada’s statute that gives a superpriority lien to homeowners’ associations to collect their unpaid dues.  So Freddie Mac was entitled to judgment in its favor in a quiet title action brought by the purchaser at the foreclosure sale held under the homeowners’ association dues lien.  The fact that the deed of trust named Bank of America as beneficiary did not invalidate Freddie Mac’s lien since Bank of America acted as Freddie Mac’s agent and loan servicer/  Freddie Mac owned the note; Bank of America was deed of trust beneficiary and Freddie Mac’s agent, so the deed of trust was not fatally split from the note.  See In re Montierth (Nev. 2015) 354 P.3d 648, 650-651.

Ninth Circuit Court of Appeals (Mueller, J.); August 25, 2017; 2017 WL 3648519

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