This is an opportunity to continue to invest in a strategy that TwinRock has been implementing since 2013 pursuant to the Uniform Common Interest Ownership Act (1982), which provides super priority status to Homeowners Association (HOA) liens. The anticipated purchase prices will be approximately 50% of unencumbered Fair Market Value.
HOAs have “Super Priority Lien Rights” in Nevada which allow them to enforce their claim to delinquent dues/assessments through foreclosing on the home or condominium. On September 18, 2014, the Nevada State Supreme Court delivered a positive decision in determining that an HOA super priority lien is a true priority lien and that foreclosure of an HOA lien extinguishes junior liens, including a deed of trust. Lower Courts need to make individual determinations based on the facts in each case for issues such as notice requirements per statute during the HOA foreclosure process
Both Management and local counsel continue to believe the proper interpretation of the law generally supports our ability to obtain a Quiet Title decree from the Court. Management will attempt to limit the risk by reviewing available documentation prior to purchasing homes.
Title companies are requiring a Quiet Title decree from the Court on each home before title insurance can be issued in order to effectuate clean title.