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In 2015, the Nevada state legislature changed the state’s laws to require notice of foreclosure to be given to all junior lienholders. But the case in question deals with the pre-2015 version of the law, which did not make it mandatory to give notice to junior lienholders, which according to the Ninth Circuit is a violation of the Constitution. And according to the attorney’s at Ballard Spahr, the impact of the ruling could be significant. Nevada Revised Statutes section 116.3116 et seq. strips a mortgage lender of its first deed of trust when a homeowners’ association forecloses on the property based on delinquent HOA dues. Before it was amended, it did so without regard for whether the first deed of trust was recorded before the HOA dues became delinquent, and critically, without requiring actual notice to the lender that the homeowners’ association intends to foreclose. We hold that the Statute’s “opt-in” notice scheme, which required a homeowners’ association to alert a mortgage lender that it intended to foreclose only if the lender had affirmatively requested notice, facially violated the lender’s constitutional due process rights under the Fourteenth Amendment to the Federal Constitution. We therefore vacate the district court’s judgment and remand for proceedings consistent with this opinion. The decision itself stems from a case that involved an attempt to quiet the Skiptracing title on a home purchased at a HOA foreclosure auction.

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