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» VISIT US ONLINE @ DSNEWS.COM 91 NEVADA Homeowners' Associations—The Robin Hoods of Foreclosure Nevada is just one of a number of states that is experiencing losses in property sale values as a result of homeowner association foreclosures, according to a recent report by the Nevada Associa- tion of Realtors. Statutes in Nevada allow HOAs to foreclose on homeowners for not paying their association dues. HOA liens are given the higher priority over first mortgage holders, so their debt is first paid off, and then the lender and homeowner are taken out of the equation. As a result, many people are able to get foreclosed homes at auction for a fraction of the price by paying back HOA dues rather than what homes were initially worth. Further, all remaining debt is erased, and borrowers can be stuck paying back mortgages for houses they no longer possess. Homeowners' association foreclosures are a controversial sub- ject in Nevada. According to a report by the Nevada Department of Business and Industry, 77 percent of Nevada residents surveyed oppose HOAs' ability to foreclose on homes because of unpaid dues. Eighty-two percent believe that debt to lenders should be paid before debt to HOAs. However, if properly documented, all recorded lien-holders can get their fair share of repayment. According to Tiffany & Bosco, a law firm that practices in Nevada, the two biggest challenges in dealing with HOA foreclosures are, "ensuring that any super-por- tion of a HOA lien is properly calculated and that a sale is properly noticed to all recorded lien holders." According to the firm, the increased frequency of HOA lien sales began in 2012 when courts began recognizing HOA liens as having priority over other liens. is was bolstered by a 2014 Nevada Supreme Court decision, which held that HOA foreclo- sures could, in fact, eradicate the first Deed of Trust if conducted properly. It is estimated that HOA foreclosures in Washoe and Clark counties conducted between January 1, 2013, and June 30, 2016, resulted in a loss of over $1 billion. According to Tiffany & Bosco, laws that pertain to HOA foreclosures have been heard in the 9th Circuit Court and the Nevada Supreme Court, which have issued opposing rulings.