Before it was amended in 2015, Nevada Revised Stats. 116.3116 allowed a homeowner’s association to foreclose its lien for unpaid homeowner’s dues thereby wiping out the otherwise senior deed of trust on the property without giving notice of its foreclosure to the holder of the senior deed of trust, unless the holder had affirmatively requested such notice. This decision holds that by failing to require notice to the senior deed of trust holder the statute violated the due process clause. And it finds there was state action in the legislative enactment of the statute which allowed the homeowners association to acquire senior rights and extinguish the senior mortgagee’s rights.
Ninth Circuit Court of Appeals (Nelson, D.W., J.; Wallace, J., dissenting); August 12, 2016; 2016 WL 4254983