Nevada Law Allows Redemption After HOA Foreclosure Sale
Many people do not realize that Nevada law changed regarding the right of a homeowner to redeem their property after an HOA Lien Sale. NRS 116.31166(3) provides a statutory right of redemption, whereby the homeowner or anay subordinate lien holder "may redeem the property at any time within 60 days after the sale." To exercise this right, the person seeking redemption must satisfy 2 requirements:
1. The person redeeming the property must pay "[t]he purchaser the amount of his or her purchase price, with interest at the rate of 1 percent per month thereon in addition, to the time of redemption, plus" any additional fees, assessments, or taxes paid by the purchaser. NRS 116.31166(3)(a)(1)-(3). The Nevada Supreme Court has recognized that "additional fees, assessments, or taxes paid by the purchaser" are impossible to know; however a homeowner or lienholder must at least tender the purchase price because the homeowner has knowledge of the purchase price plus the one-percent interest per month.
2. The person redeeming must serve notice of the redemption on (1) the purchaser and (2) the person who conducted the sale. The purchaser should send (a) the payment; (b) a notice of redemption and (c) an original or certified copy of the deed.
While HOA foreclosures have turned litigation on its head for years, these new rights of redemption help restore some balance to homeowners. Let us know how we can help you with your foreclosure issues.
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