BANK AS TRUSTEE FOR STRUCTURED ASSET SECURITIES CORPORATION MORTGAGE PASS THROUGH CERTIFICATES SERIES 2006 BC1 v. SFR LLC (2020)

MEMORANDUM ***

This action seeks to quiet title to a residential property. The district court held that a nonjudicial foreclosure sale to SFR Investments Pool 1, LLC (“SFR”), by Seasons at Aliante Community Associations (the “HOA”) pursuant to Nevada Revised Statutes Sections 116.3116 et seq. (“Chapter 116”) extinguished U.S. Bank's deed of trust. We have jurisdiction under 28 U.S.C. § 1291 and affirm.

1. U.S. Bank's argument that a nonjudicial foreclosure under Chapter 116 violates the Takings Clause is foreclosed by our decision in Wells Fargo Bank, National Ass'n v. Mahogany Meadows Avenue Trust, 979 F.3d 1209, 1216-18 (9th Cir. 2020).

2. U.S. Bank's due process claims fail because the bank received timely notice of the foreclosure sale that satisfied all statutory requirements. U.S. Bank's argument that the notice provisions of Chapter 116 are constitutionally deficient is foreclosed by Bank of America, National Ass'n v. Arlington West Twilight Homeowners Ass'n, 920 F.3d 620, 624 (9th Cir. 2019); see also Mahogany Meadows, 979 F.3d at 1216-18.

3. U.S. Bank's claim that the HOA foreclosure sale was commercially unreasonable is also unavailing. Although the sale price was 8.4 percent of the fair market value estimated by U.S. Bank's appraiser, “mere inadequacy of price is not in itself sufficient to set aside the foreclosure sale.” Nationstar Mortg., LLC v. Saticoy Bay LLC Series 2227 Shadow Canyon, 133 Nev. 740, 405 P.3d 641, 648 (2017). Rather, “there must also be a showing of fraud, unfairness, or oppression.” Shadow Wood HOA v. N.Y. Cmty. Bancorp., 132 Nev. 49, 366 P.3d 1105, 1112 (2016). U.S. Bank has not met this standard because it has not identified “any irregularity in the foreclosure proceedings affect[ing] the sale price.” SFR Invs. Pool 1, LLC v. U.S. Bank, N.A., 135 Nev. 346, 449 P.3d 461, 466 (2019).

4. SFR is a bona fide purchaser. “A subsequent purchaser is bona fide ․ if it takes the property for a valuable consideration and without notice of the prior equity, and without notice of facts which upon diligent inquiry would be indicated and from which notice would be imputed to him, if he failed to make such inquiry.” Shadow Wood, 366 P.3d at 1115 (cleaned up). There is no evidence that SFR “had any notice of the pre-sale dispute between” U.S. Bank and the HOA, id. at 1116, and the mere fact that SFR “purchased the property for an amount lower than the property's actual worth ․ did not in itself put [SFR] on notice that anything was amiss with the sale,” id. at 1115 (cleaned up).

AFFIRMED.