Daisy Tr., A Nev. Tr. v. Fed. Nat'l Mortg. Ass'n

Decision Date24 March 2022
Docket Number21-15595
PartiesDAISY TRUST, a Nevada trust, Plaintiff-Appellant, v. FEDERAL NATIONAL MORTGAGE ASSOCIATION, Defendant-Appellee.
CourtU.S. Court of Appeals — Ninth Circuit

DAISY TRUST, a Nevada trust, Plaintiff-Appellant,
v.
FEDERAL NATIONAL MORTGAGE ASSOCIATION, Defendant-Appellee.

No. 21-15595

United States Court of Appeals, Ninth Circuit

March 24, 2022


NOT FOR PUBLICATION

Argued and Submitted February 18, 2022 San Francisco, California

Appeal from the United States District Court No. 2:20-cv-01217-GMN-EJY for the District of Nevada Gloria M. Navarro, District Judge, Presiding

Before: McKEOWN and W. FLETCHER, Circuit Judges, and BENNETT, [**] District Judge.

MEMORANDUM [*]

Nevada Revised Statutes § 106.240 "creates a conclusive presumption that a lien on real property is extinguished ten years after the debt becomes due." Pro-Max Corp. v. Feenstra,

1

16 P.3d 1074, 1077 (Nev. 2001) (per curiam). This statute provides as follows:

The lien heretofore or hereafter created of any mortgage or deed of trust upon any real property, appearing of record, and not otherwise satisfied and discharged of record, shall at the expiration of 10 years after the debt secured by the mortgage or deed of trust according to the terms thereof or any recorded written extension thereof become wholly due, terminate, and it shall be conclusively presumed that the debt has been regularly satisfied and the lien discharged

Nev. Rev. Stat. § 106.240 (emphasis added). This appeal turns on whether an unrecorded notice of acceleration can trigger the ten-year statutory clock provided by § 106.240 and extinguish a deed of trust. The district court granted Fannie Mae's motion to dismiss, holding that an unrecorded notice cannot trigger this provision. We have jurisdiction under 28 U.S.C. § 1291, and we affirm.

This foreclosure dispute centers on a property located in North Las Vegas, governed by a homeowners' association ("HOA"), and held subject to a deed of trust that was assigned to Fannie Mae. In 2009, the residential property owners fell behind on their monthly payments to both entities. Fannie Mae issued a Notice of Default in 2010 but recorded a Notice of Recission in 2011. The HOA foreclosed on the property in 2012, and Daisy Trust purchased the property at the foreclosure sale.

From 2014 to 2019, Daisy Trust litigated a quiet title action against Fannie Mae in Nevada state court. The Nevada trial court granted Fannie Mae summary judgment, and Daisy Trust appealed, only to voluntarily dismiss its appeal in 2019.

2

Subsequently, Daisy Trust filed the instant suit in Clark County, Nevada, alleging that...

To continue reading

Request your trial

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT