NEVADA – FHFA, Fannie and Freddie File Defensive Class Action in Nevada
JDSUPRA BUSINESS ADVISOR: FHFA, Fannie and Freddie File Defensive Class Action in Nevada
…an effort to “avoid the cost and burden of piecemeal litigation” of hundreds of cases in the Nevada HOA foreclosure crisis…
By Heather Howell Wright – Bradley Arant Boult Cummings LLP
October 14, 2015
In an effort to “avoid the cost and burden of piecemeal litigation” of hundreds of cases in the Nevada HOA foreclosure crisis, the Federal Housing Finance Agency (FHFA), Fannie Mae, and Freddie Mac (collectively, “Plaintiffs”) recently filed a putative class action and motion to certify a defensive class, pursuant to Rule 28 (b)(2) and (b)(1)(B), in the District of Nevada.
Plaintiffs seek to certify a defensive class consisting of “all current record owners—other than Fannie Mae, Freddie Mac, or the Conservator—of Units as to which: (1) HOA Foreclosure Sales have been or will be completed on or after September 18, 2009, (2) an Enterprise Lien had attached and had not been satisfied at the time of the applicable HOA Foreclosure Sale, and (3) the Court may assume and exercise in rem jurisdiction.” Plaintiffs assert that 12 US.C. § 4617(j)(3) preempts Nev. Rev. Stat. § 116.3116 and that HOA Foreclosure Sales do not extinguish Fannie Mae or Freddie Mac liens. Read more: