Nationwide Title Clearing Inc (NTC) is now offering the Request for Notice Service in Nevada, where this hot button issue is especially sensitive due to a 2014 case involving Bank of America.
This service is crucial for an HOA or anyone else who wants to sell a property, as they have to notify the lender on the Request for Notice.
Here’s an excerpt on the chain of events that lead to this ruling and requirement, which is now called the “super lien” service among industry insiders:
In Nevada, the state supreme court made a controversial ruling last September that gave HOAs the authority to foreclose on a home and extinguish a mortgage non-judicially, a ruling that was later appealed by lenders.
The Nevada Supreme Court decision centered on a house sold in Las Vegas in 2007 with a mortgage loan for $885,000 originated by Bank of America. The owner defaulted on the loan a year later and Southern Highlands Community Association foreclosed on the property. The association sold the house at an auction in September 2012 to SFR Investments Pool 1 for $6,000 – the amount the homeowner owed in delinquent HOA dues. When Bank of America tried to schedule its own foreclosure auction on the house the following December, SFR Investments made a filing to stop Bank of America's foreclosure auction, claiming that the mortgage had been extinguished when SFR bought the house in September.
The full background on how this service came about can be found in this DS News article here.
