[WSBARP] Condo Association Superpriority Liens vs. FHFA: Ninth Circuit Speaks

[Rod Harmon]

If I am reading it correctly, this case, Berezovsy v. Moniz, would apply to super-priority condo lien foreclosures in Washington.  Which leaves me with two questions:

1.        How could a bidder at a condo lien foreclosure sale determine whether the Federal Housing Finance Agency is the conservator or receiver of the loan secured by a deed of trust on the property?  Record title did not disclose it in Berezovsy.

2.       How many loans in Washington that everyone thought were eliminated by a super-priority condo lien foreclosure sale are still secured by the foreclosed properties?

Rod Harmon

RODNEY T. HARMON
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3.

From: wsbarp-bounces at lists.wsbarppt.com [mailto:wsbarp-bounces at lists.wsbarppt.com] On Behalf Of Mark Phelps
Sent: Monday, August 28, 2017 11:04 AM
To: WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com>
Subject: [WSBARP] Condo Association Superpriority Liens vs. FHFA: Ninth Circuit Speaks

Listmembers:

An FYI that on Friday, per the attached, the Ninth Circuit decided against condo associations having superpriority liens and in favor of the FHFA as holder of FNMA and FHLMC loans. It  basically held that as the Nevada superpriority law conflicted with the FHFA statute, the statute preempted it.

This decision, while, as it was in line with earlier Nevada DC decisions, was not unexpected, will impact association disputes on FNMA and FHLMC loans.

Mark J. Phelps
Attorney, Litigation Practice Group Leader
Desh International & Business Law * www.deshlaw.com<http://www.deshlaw.com/>
11400 SE 8th Street, Suite 260, Bellevue, WA 98004
Direct: (425) 242-3398 * Fax: (425) 968-7571
Email: mphelps at deshlaw.com<mailto:mphelps at deshlaw.com>
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