CARSON CITY, Nev. (AP) — The Nevada Supreme Court has upheld the use of an out-of-court foreclosure process that helped investors acquire homeowner association properties at reduced prices during the Great Recession.
Justices ruled unanimously Thursday that the process doesn't violate protections for original mortgage holders under the U.S. and Nevada constitutions — and that due process rights weren't violated because purchases don't constitute a state action.
The Las Vegas Review-Journal reports the ruling is significant for thousands in Las Vegas who acquired foreclosed homes at a fraction of their value by paying off liens held by homeowner associations.
But it says the decision will have to be reconciled with a recent ruling by the 9th U.S. Circuit Court of Appeals in a different Nevada case that said the state process violated constitutional protections.