Mortgage Note Investing in Nevada

Nevada offers fast, clean foreclosures — a non-judicial trustee's sale completes in roughly four to five months, and the trustee's deed vests title without any equity or right of redemption (Nev. Rev. Stat. §107.080). On the foreclosure mechanics alone, Nevada looks like a speed play.

But Nevada is the cautionary super-lien state, and that risk dominates the underwrite. An HOA holds a nine-month super-priority slice of assessments that can prime — and, through an HOA foreclosure, wipe out — a first mortgage (Nev. Rev. Stat. §116.3116). The landmark case is SFR Investments Pool 1 v. U.S. Bank, 130 Nev. 742 (2014), where exactly that happened. On any HOA-governed collateral, monitor association dues religiously; a missed assessment can extinguish your first lien entirely.

Deficiency judgments are available, so recourse beyond the collateral exists where the borrower is collectable. Nevada is a tax-deed state with no redemption on tax sales and runs a two-year tax-lien process, and originating or servicing loans requires a license. The foreclosure is fast — but the super-lien is the number that should drive your bid.