Super-priority lien challenged for its state constitutionality in the United States of America

Abstract

This note focuses on super-priority liens (SPLs), which allow homeowner associations to foreclose a property over its mortgage. Twenty-two states have so far implemented such liens, hoping to balance the interests of mortgage creditors and homeowner associations. The state of Nevada has been facing more challenges from both mortgage creditors and homeowner associations regarding the constitutionality of non-judicial foreclosure than other states. This paper summaries the cases since 2000 and discusses the three major decisions that the Supreme Court of Nevada made involving SPLs' non-judicial constitutionality, tender-extinguishing SPLs, and federal creditors' role in SPLs.