Cecilia Diaz

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Case Synopsis

This Court has previously held that the Federal Foreclosure Bar preempts NRS 116. 3116 and that a first deed of trust that secures a loan owned by the Federal Housing Finance Agency (FHFA) or by a federal entity under the FHFA conservatorship is not extinguished by a homeowner’s association foreclosure sale. However, this Court has not addressed what statute of limitations applies to an action brought to enforce the Federal Foreclosure Bar. The Housing and Economic Recovery Act (HERA) is the federal law that enacted the Federal Foreclosure Bar and sets out a statute of limitations depending on whether the action brought sounds in contract or tort. The underlying claims here sound in contract. HERA provides a six-year statute of limitations for claims sounding in contract, the servicer commenced the action within the six years of the foreclosure sale, the date the parties agree triggered the running of the statute of limitations. The district court’s summary order is reversed. Since the loan servicer sufficiently owned the subject loan, the matter is remanded to the district court to enter judgment in favor of the servicer.