Nevada HOA Foreclosure Process and the Super-Priority Lien

In Nevada, falling behind on HOA assessments can lead to the sale of your home without a court case. Nevada HOA foreclosure is not instant, though. The law requires a repayment plan offer, a series of notices and a 90-day cure period before any sale. This guide, part of our series on HOA foreclosure, explains each step, the super-priority lien and the points where a sale can be stopped.

When can a Nevada HOA foreclose?

The association has a lien for assessments from the time they become due, and recording the declaration perfects it (NRS 116.3116). If assessments are payable in installments, the full amount becomes a lien when the first installment is due.

The lien does not last forever. It is extinguished unless, within three years after the full assessment amount becomes due, a notice of default is recorded or a lawsuit is filed.

Fines are treated differently. A lien based on a fine generally cannot be foreclosed (NRS 116.31162). The exceptions are a violation posing an imminent threat of a substantial adverse effect on health, safety or welfare, and a construction schedule penalty under NRS 116.310305. See our guide to HOA fines in Nevada.

How does the Nevada HOA foreclosure process work?

This is a simplified overview of the Nevada HOA foreclosure process. Each step has its own notice and timing rules, and a defect at any step can delay or void a sale.

1. Repayment plan offer: no earlier than 60 days after an assessment is past due, the association must mail a fee schedule, a repayment plan and a hearing notice (NRS 116.31162). If within 30 days you do not pay, enter the plan or request a hearing, the association may move forward. It may also move forward if you lose the hearing or miss a plan payment by more than 10 days after its due date.

2. Notice of delinquent assessment: the association mails a notice stating the amount owed, by certified or registered mail with return receipt requested.

3. Notice of default and election to sell: at least 30 days later, the association may record a notice of default. It must break out the amount that has priority over the first mortgage. It must state that the sale may extinguish that mortgage unless the lender pays the priority amount at least five days before the sale.

The notice of default must also carry a bold warning that you could lose your home.

4. The 90-day cure period: you then have 90 days to pay. The period starts the day after the notice of default is recorded or mailed to you, whichever is later. Within 10 days after recording, the notice must be mailed by certified mail to anyone who requested notice and to holders of earlier recorded security interests (NRS 116.31163).

5. Notice of sale and the sale: if the default is not cured, a notice of sale follows and the home is sold at public auction. The association may not foreclose by sale after it receives notice that the unit is in mortgage foreclosure mediation under NRS 107.086, subject to limited exceptions.

What is the Nevada super-priority lien?

Most of an HOA lien ranks behind a first mortgage recorded before the assessments became delinquent. The super-priority portion is the exception. It covers assessments for up to nine months before the notice of default and capped costs of collection (NRS 116.3116). It also covers exterior maintenance and nuisance abatement charges under NRS 116.310312.

Attorney’s fees are not part of the super-priority amount.

In SFR Investments Pool 1, LLC v. U.S. Bank, N.A. (2014) 130 Nev. 742, 334 P.3d 408, the Nevada Supreme Court held that a proper foreclosure of the super-priority portion can extinguish the first deed of trust. That is why lenders often pay the super-priority amount before a sale.

Suppose the first lender pays the priority amount at least five days before the sale and records proof at least two days before. Then the sale may not extinguish its loan (NRS 116.31164). Either way, you still owe the remaining balance, and you can still lose the home.

How can you stop a Nevada HOA foreclosure?

Respond to the plan offer: within 30 days of the mailing, pay, accept the repayment plan or request a hearing. Missing this window lets the association move to the next step.

Get a payoff statement: on written request, the association must give you a statement of unpaid assessments within 10 business days (NRS 116.3116). Compare it against your records and the association’s fee schedule.

Check the records: ledgers, mailing proofs and board minutes show whether each step was done right. See our guide to Nevada HOA records requests.

Challenge fines and fees: remove fines that cannot be foreclosed and fees that exceed the statutory caps. Our guide on how to contest an HOA fine explains the hearing process.

Use the 90 days: paying the amount needed to cure within the cure period stops the sale. Do not wait until the last week, because getting an accurate payoff takes time.

An administrative complaint is a separate path. Our guide to the Nevada HOA Ombudsman explains how it works, but do not assume a complaint pauses the foreclosure deadlines.

What happens at a Nevada HOA foreclosure sale?

The sale must be held between 9 a.m. and 5 p.m. Anyone involved in the foreclosure may not bid, including board members, the community manager, the collection agency and attorneys (NRS 116.31164). Their relatives within the third degree and the person conducting the sale may not bid either.

Sale proceeds go first to the costs of the sale and of maintaining the unit, then to the association’s lien, then to junior liens in order of priority. Any money left over goes to the former owner, so ask about surplus funds after a sale.

Can you redeem your home after the sale?

The former owner, a successor in interest or a junior lender with a recorded interest can redeem within 60 days after the sale (NRS 116.31166). Redemption requires the purchase price plus 1 percent per month interest. It also requires assessments, taxes and lien payments the buyer made after the sale, with interest, and the buyer’s reasonable maintenance costs.

If no one redeems within 60 days, the buyer receives the deed. Because the window is short, get legal advice as soon as a sale date is set or held.

When should you call a Nevada HOA foreclosure lawyer?

Each step adds fees, and each has its own deadline. Early review often finds an overstated balance, uncapped fees or a missing notice. Our HOA foreclosure defense team represents owners across Las Vegas, Henderson and Reno and Lake Tahoe.

If the dispute is about the assessment itself, see our assessment disputes page. Boards that want to collect lawfully can see our collection and lien services.

Frequently asked questions

Conclusion

HOA board meeting rules give owners real tools: advance notice, an agenda, a chance to speak, limits on closed sessions and access to minutes. California adds a ban on email meetings and civil penalties. Nevada adds quarterly meetings, two comment periods and mandatory audio recordings.

Nevada HOA foreclosure follows a strict path. It runs from a repayment plan offer through two notices and a 90-day cure period to a sale and a 60-day redemption window. The super-priority lien makes these cases high stakes for both owners and lenders.

Respond to the first letter, request a payoff statement, and keep paying current assessments while you dispute the rest. For California’s rules, see California HOA foreclosure and the $1,800 rule, and for Nevada’s wider framework, our Nevada NRS 116 guide.

Disclaimer: This article provides general information about Nevada HOA law and is not legal advice. Reading it does not create an attorney-client relationship. Outcomes depend on the facts and the association’s governing documents.