Freedom Mortgage Corp. v. Triple Braided Cord, LLC

MEMORANDUM

Appellant Triple Braided Cord, LLC (“Triple Braided Cord”) appeals the judgment against it in Appellee Freedom Mortgage Corporation’s (“Freedom Mortgage”) suit to quiet title on a property located at 5521 Hidden Rainbow Street in North Las Vegas, Nevada. Because the parties are familiar with the facts and procedural history, we do not restate them except as necessary to explain our decision. We have jurisdiction under 28 U.S.C. § 1291 , and we reverse and remand for further proceedings.

The district court granted judgment for Freedom Mortgage based on its determination that Triple Braided Cord was not a bona fide purchaser of the Hidden Rainbow property because Triple Braided Cord had constructive notice of Freedom Mortgage’s prior-recorded first deed of trust at the time of the purchase. The district court also held, in denying Triple Braided Cord’s motion for an extension of time to file dispositive motions, that a homeowner’s association (“HOA”) foreclosure based on a super-priority lien under Nevada law does not extinguish a first security deed of trust. However, the Nevada Supreme Court has since held in SFR Investments Pool 1, LLC v. U.S. Bank, N.A., 334 P.3d…