JPMorgan Chase Bank, N.A. v. SFR Investments Pool 1, LLC (200 F. Supp. 3d 1141, 2016)

United States District Court for the District of Nevada 2016-07-28

Banks and Banking

Citations

Full opinion text

ORDER

RICHARD F, BOULWARE, II, United States District Judge

I. INTRODUCTION

This is a quiet title and wrongful foreclosure action brought by Plaintiff JPMorgan Chase Bank, N.A. (“Chase”). Chase, which was the beneficiary of a deed of trust encumbering certain real property in Las Vegas, Nevada, brought suit seeking declaratory, injunctive, and monetary relief against a homeowners association, a collection service, and the entity that purchased the property when the homeowners association foreclosed on it for unpaid assessments pursuant to Nevada’s HOA lien statute, N.R.S. 116.8116.

This case raises a series of questions with respect to the constitutionality of N.R.S. 116.3116 and the validity of other challenges to various aspects of HOA foreclosure sales in Nevada. The case is now before the Court on several motions for summary judgment. For the reasons discussed below, the Court finds that N.R.S. 116,3116 is constitutional. The Court also rejects Chase’s remaining challenges to the foreclosure sale that occurred in this case. Summary judgment is therefore granted in favor of Defendants on all claims.

II. BACKGROUND

A. Procedural History

Chase filed its Verified Complaint on December 9, 2014, ECF No. 1. In its Complaint, Chase names the following Defendants: SFR Investments Pool I, LLC (“SFR”), The Preserves at Elkhorn Springs Homeowners Association, Inc. (“HOA”), ATC Assessment Collection Group, LLC (“ATC”), and Heather and Jason Reinhard (“the Reinhards”). After filing a Notice of Bankruptcy, the Rein-hards were voluntarily dismissed from this action by Chase on April 15, 2015. ECF Nos. 25, 46. ■

In its complaint, Chase states that the Reinhards owned certain real property that was subject to a set of Covenants, Conditions, and Restrictions (CC&Rs) enforced by the HOA and that Chase was the beneficiary of a deed of trust encumbering that property. Chase alleges that the HOA foreclosed on the property pursuant to a lien for unpaid assessments and that SFR purchased the property at the resulting foreclosure sale. Chase claims that the foreclosure sale did not extinguish its deed of trust pursuant to Nevada’s HOA foreclosure statutes, N.R.S. 116.3116 et seq.

Chase asserts the following causes of action in its Complaint: 1) Quiet Title/Declaratory Relief against all Defendants; 2) Permanent and Preliminary Injunction against SFR; 3) Wrongful Foreclosure— Commercial Unreasonableness against ATC and the HOA; 4) Wrongful Foreclosure—Violation of N.R.S. 116.3116 against ATC and the HOA; 5) Wrongful Foreclosure—Violation of N.R.S. 116.3102 against ATC and the HOA; 6) Negligence against ATC and the HOA; 7) Negligence Per Se against ATC and the HOA; 8) Breach of Contract against ATC and the HOA; 9) Misrepresentation against the HOA; 10) Unjust Enrichment against SFR; and 11) Waste against SFR.

SFR filed a Motion to Dismiss or, in the Alternative, Motion for Summary Judgment and a Motion to Expunge Lis Pen-dens on January 23, 2015, in which ATC and the HOA joined. ECF Nos. 18, 23. On April 1, 2015, Chase filed an opposition to the Motion to Dismiss as well as a, Coun-termotion for Summary Judgment or, in the Alternative, Motion for Continuance under Fed. R. Civ. P. 56(d) against SFR. ECF No. 38. On the same date, Chase also filed an opposition and Countermotion for Summary Judgment against ATC and the HOA. ECF No. 40. The parties engaged in discovery, which closed on September 15, 2015. ECF No. 60. On December 14, 2015, Chase filed a Second Motion for Summary Judgment against all Defendants to which Chase attached evidence obtained during discovery. ECF No. 69. Pursuant to an order from the Court, the parties filed supplemental briefs on February 8, 2016 addressing the applicability to this case of the Nevada Supreme Court’s decision in Shadow Wood HOA v. N.Y. Cmty. Bancorp, Inc., — Nev. -, 366 P.3d 1105 (2016).

B. Undisputed Facts

After reviewing the evidence submitted by the parties, the Court finds the following undisputed facts.

1.Reinhard Loan and Deed of Trust

On approximately August 21, 2008, the Reinhards purchased the real property located at 7400 Brittlethorne Avenue, Las Vegas, Nevada (the “Property”). On May 22,2009, the Reinhards executed a Deed of Trust against the Property securing a loan in the amount of $406,000. The Deed of Trust identified MetLife Home Loans (“MetLife”) as the lender, Mortgage Electronic Registration Systems, Inc. (“MERS”) as the beneficiary, and Fidelity National Title Agency as the trustee. The Reinhards’ loan for the Property is insured by the Department of Housing and Urban Development (HUD), a department of the federal government. On February 17,2012, MERS assigned its beneficial interest under the Deed of Trust to MetLife. On October 17, 2013, MetLife assigned its beneficial interest under the Deed of Trust to Chase.

2.CC&Rs

The Property is part of a planned community governed by the HOA The HOA recorded a Declaration of Covenants, Conditions, and Restrictions (CC&Rs) against the Property on February 19, 1997. Section 17.3(b) of the CC&Rs requires that the HOA give prompt written notice to each “Eligible Mortgagee” and “Eligible Insured,” as those terms are defined in the CC&Rs, of any delinquency in payment of HOA assessments for 60 days where the unit is subject to a first security interest. Section 18.3 contains a limited mortgage savings clause. It provides that the HOA has á lien for unpaid HOA'assessments, arid that “[ejxcept to the extent permitted under [N.R.S. Í16.3116(2)], a lien under this Section is prior to all other liens and encumbrances except ... a first Security Interest on the Unit recorded before the date on which the assessment sought to be enforced became delinquent.”

3.First HOA Foreclosure and Rescission

On July 25, 2011, the HOA recorded a Notice of Delinquent Assessment Lien against the Property. On September 1, 2011, Hampton & Hampton, on behalf of the HOA, recorded a Notice of Default and Election to Sell against the Property. On approximately October 7, 2011, MetLife, the Lender for the Reinhards’ mortgage, tendered a payment of $1,973 to Hampton & , Hampton for miscellaneous foreclosure expenses on behalf of the Reinhards. On October 21, 2011, Hampton & Hampton recorded.a Notice of Rescission of the July 25, 2011 Lien.

4. Second HOA Foreclosure and Sale of Property

On June 22, 2012, ATC, on behalf of the HOA, recorded a Notice of Delinquent Assessment Lien against the Property. On July 25, 2012, ATC recorded a Notice of Default and Election to Sell against the Property. The Notice of Default and Election to Sell was mailed on August 1, 2012 to the Reinhards, MERS, and MetLife, among others. On July 10, 2014, ATC recorded a Notice of Sale against the Property. The Notice of Sale was mailed on July 8, 2014 to the Reinhards, MERS, MetLife Home Loans, and Chase, among others.

On August 5, 2014, ATC, on behalf of the HOA, conducted, a foreclosure sale by public auction. SFR was the winning bidder at the foreclosure sale with a bid of $69,000. On August 14, 2014, a Trustee’s Deed Upon Sale was recorded, reflecting the fact that the Property was sold to SFR. The Deed states that ATC “has complied with all requirements of law including, but not limited to, the elapsing of 90 days, mailing of copies of Notice of Delinquent Assessment Lien and Notice of Default and the Posting and Publication of the Notice of Sale.”

III. LEGAL STANDARD

Summary judgment is appropriate when the pleadings-, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show “that there is no genuine dispute as to any material fact and the- movant is entitled to judgment as a matter of law.” Fed. R. Civ. P. 56(a); accord Celotex Corp. v. Catrett, 477 U.S. 317, 322, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986). In ruling on a motion for summary judgment, the court views all facts and draws all inferences in the light most favorable to the nonmoving party. Johnson v. Poway Unified Sch. Dist., 658 F.3d 954, 960 (9th Cir. 2011).

Where the party seeking summary judgment does not have the ultimate burden of persuasion at trial, it “has both the initial burden of production and the ultimate burden of persuasion on a motion for summary judgment.” Nissan Fire & Marine Ins. Co., Ltd. v. Fritz Companies, Inc., 210 F.3d 1099, 1102 (9th Cir. 2000). “In order to carry its [initial] burden of production, the moving party must either produce evidence negating an essential element of the nonmoving party’s claim or defense or show that the nonmoving party does not have enough evidence of an essential element to carry its ultimate burden of persuasion at trial.” Id. If it fails to carry this initial burden, “the .nonmoving party has no obligation to produce anything, even if the nonmoving party would have the ultimate burden of persuasion at trial.” Id. at 1102-03. If the movant has carried its initial burden, “the nonmoving party must produce evidence to support its claim or defense.” Id. at 1103. In doing so, the nonmoving party “must do more than simply show that there is some metaphysical doubt as to the material facts .... Where the record taken as a whole could not lead a rational trier of fact to find for the nonmoving pai-ty, there is no genuine issue for trial.” Scott v. Harris, 550 U.S. 372, 380, 127 S.Ct. 1769, 167 L.Ed.2d 686 (2007) (alteration in original) (internal quotation marks omitted). However, the ultimate burden of persuasion on a motion for summary judgment rests with the moving party, who must convince the court that no genuine issue of material fact exists. Nissan Fire, 210 F.3d at 1102.

IV. DISCUSSION

A. Order of Disposition of Motions

The Court currently has several motions before it which were filed at different stages of the case. Defendants filed a Motion to • Dismiss or, in the Alternative, a Motion for Summary Judgment as their initial response to the Complaint. Before discovery began, Chase filed a Countermotion for Summary Judgment or, in the Alternative, Motion for Continuance pursuant to Rule 56(d). After discovery closed, Chase filed a Second Motion for Summary Judgment.

In the interest of judicial economy and in light of the Court’s inherent power to control its own docket, the Court will address the parties’ arguments at the summary judgment stage and will consider all admissible evidence presented in the record. The Court therefore will address all arguments raised in the parties’ various summary judgment motions, considering evidence where appropriate. Accordingly, the Court denies Chase’s request for a Rule 56(d) continuance, as Chase has already had the opportunity to conduct discovery and to use evidence from discovery in support of its Second Motion for Summary Judgment.

Based upon its review, the Court grants summary judgment in Defendants’ favor on all claims. To the extent Defendants have not moved for summary judgment on a particular’ claim, the Court grants it sua sponte because both sides have had a full and fair opportunity to conduct discovery and present arguments on the issues involved. See Albino v. Baca, 747 F.3d 1162, 1176 (9th Cir. 2014) (en banc) (“If the record is sufficiently developed to permit the trial court to consider summary judgment, and if the court finds that when viewing the evidence in the light most favorable to a moving party the movant has riot shown a genuine dispute of fact on [a particular issue], it may be appropriate for the district court to- grant summary judgment sua sponte for the nonmovant on [that] issue.”). The Court now considers each of the arguments raised by the parties.

B. Overview of Nevada’s HOA Lien Statute

This case deals with the applicability and validity of Nevada’s HOA lien statute, N.R.S. 116.3116, which confers liens to HOAs on homeowners’ units for unpaid assessments, construction penalties, and fines imposed against the owners of those units. The statute also establishes the priority of the liens and provides a mechanism for their nonjudicial foreclosure. Given the centrality of this statutory scheme to this case, the Court will lay out its structure in some detail.

N.R.S. 116.3116 has recently been amended several times. As the HOA foreclosure sale (and the legal effect of that sale, if any) took place in August 2014, the Court focuses its analysis on the version of the statute that was in effect at that time. The Nevada Supreme Court settled many aspects of the debate over the legal effect of this statute in September 2014 in SFR Investments Pool 1, LLC v. U.S. Bank, holding in that decision that “N.R.S^ 116.3116(2) gives an HOA a true superpri-ority lien, proper foreclosure of which will extinguish a first deed of trust.” — Nev. -, 334 P.3d 408, 419 (2014). More specifically, “N.R.S. 116.3116(1) gives an HOA a lien on its homeowners’ residences” for unpaid assessments and fines, and “N.R.S. 116.3116(2) elevates the priority of the HOA lien over other liens.” Id. at 410. This “superpriority” portion of an HOA lien is ■limited, however. “As to' first deeds of trust, NRS 116.3116(2) ... splits an HOA lien into two pieces, a superpriority piece and a subpriority piece. The superpriority piece, consisting of the last nine months of unpaid HOA dues and maintenance and nuisance-abatement charges, is ‘prior to’ a first deed of trust. The subpriority piece, consisting of all other HOA fees or assessments, is subordinate to a first deed of trust.” Id. at 411.

The Nevada Supreme Court has also recently clarified that the superpriority portion of the HOA’s lien for assessments does not include collection fees and foreclosure costs. Horizons at Seven Hills v. Ikon Holdings, — Nev. -, 373 P.3d 66 (2016). In reaching its decision, the Court analyzed the statutory text and scheme, a related provision in the Nevada Administrative Code, the legislative history of the HOA lien statute, and an advisory opinion from the Nevada Department of Business and Industry, Real Estate Division (NRED). Id. at 69-72. The Court concluded that “the superpriority lien granted by NRS 116.3116(2) does not include an amount for collection fees and foreclosure costs incurred; rather it is limited to an amount equal to the common expense assessments due during the nine months before foreclosure.” Id at 72.

Chapter 116 of the Nevada Revised Statutes details the procedures- with which an HOA must comply to. initiate and complete a foreclosure on its lien. First, the CC&Rs or other declaration of- the planned community must state that the association’s lien may be foreclosed according to the procedures set forth in the statute. N.R.S. 116,31162(1) (2014). Next, if a unit owner has failed to pay assessments, the HOA must send a notice of delinquent assessment to the owner by certified or registered mail containing “the amount of the assessments and other sums which are due in accordance with subsection 1 of N.R.S. 116.3116, a description of the unit against which the hen is imposed and the name of the record owner of the unit.” N.R.S. 116.31162(l)(a) (2012). If the owner has-not. paid-within 30 days after the mailing of the notice of delinquent assessment, the HOA or its representative must record a notice of default and election to sell. N.R.S. 116.31162(l)(b) (2012). This notice must contain the same information as the notice of delinquent assessment and also must “[describe the deficiency in payment,” include the name and address of the person authorized to sell the unit, and contain an explicit warning that the owner can lose the home by failing to pay the amount due. H. Finally, if the owner has failed to pay the amount specified in the notice of default and election to sell within 90 days, the association may proceed with a foreclosure sale in the manner prescribed by N.R.S. 116.31164 after mailing—by certified or registered mail, return receipt requested—a notice of sale to the unit’s owner and the address of the unit. N.R.S. 116.311635 (2014).

The provisions following N.R.S. 116.3116 also impose specific notice requirements on HOAs and their representatives. Within 10 days of recording the notice of default and eléction to sell, the HOA or its representative must send a copy of the notice by first-class mail to, among others, “[e]ach person who has requested notice pursuant to N.R.S. 107.090 or 116.31168” and “[a]ny holder of a recorded security interest encumbering the unit’s owner’s interest who has notified the association, 30 days before the recordation of the notice of default, of the existence of the security interest.” N.R.S. 116.31163(1), (2) (2012). In addition, the HOA or its representative must mail a copy of the notice of sale by certified or registered mail, return receipt requested, to the unit’s owner and to “(1) [e]ach person entitled to receive a copy of the notice of default and election to sell notice under N.R.S. 116.31163” and “(2) [t]he holder of a recorded security interest or the purchaser of the unit, if either of them has notified the association, before the mailing of the notice of sale, of the existence of the security interest, lease or contract of sale, as applicable.” N.R.S. 116.311635(l)(b) (2014). Moreover, “[t]he provisions of N.R.S. 107.090,” which set forth notice requirements when a deed of trust is foreclosed, “apply to the foreclosure of an association’s lien as if a deed of trust were being foreclosed.” N.R.S. 116.31168 (2014). N.R.S. 107.090, in turn, requires mailing of the notice of default and notice of sale—by registered or certified mail, return receipt requested and with postage prepaid—to “[e]ach person who has recorded a request for a copy of the notice” and “[e]ach other person with an interest whose interest or claimed interest is subordinate to the deed of trust.” N.R.S. 107.090(3).

Finally, “[a] trustee’s deed reciting compliance with the notice provisions of N.R.S. 116.31162 through N.R.S. 116.31168 ‘is conclusive’ as to the recitals ‘against the unit’s former owner, his or her heirs and assigns, and all other persons.’ ” SFR, 334 P.3d at 411-12 (quoting N.R.S. 116.31166(2) (2014)). The foreclosure sale of a unit pursuant to the above notice provisions “vests in the purchaser the title of the unit’s owner without equity or right of redemption.” N.R.S. 116.31166(3) (2014).

In light of the foregoing, it is clear that absent the statute being found unconstitutional, the HOA’s foreclosure of its lien on the Property for unpaid assessments, if properly conducted, extinguished Chase’s Deed of Trust.

C. Due Process Challenge to N.R.S. 116.3116

In its Countermotion for Summary Judgment, Chase argues that N.R.S. 116.3116 is unenforceable because it violates the Due Process Clause of the Fourteenth Amendment to the United States Constitution and is therefore facially unconstitutional. Unlike an as-applied challenge,, which attacks the application of a statute to a specific set of facts, “a facial challenge is a challenge to an entire legislative enactment or provision.” Hoye v. City of Oakland, 653 F.3d 835, 857 (9th Cir. 2011). A plaintiff succeeds in a facial challenge only by establishing “that the law is unconstitutional in all of its applications,” and fails “where the statute has a plainly legitimate sweep.” Wash. State Grange v. Wash. State Republican Party, 552 U.S. 442, 449, 128 S.Ct. 1184, 170 L.Ed.2d 151 (2008) (citation and internal quotation marks omitted).

The Court concludes that N.R.S. 116.3116 does not violate the Due Process Clause.- First, the nonjudicial foreclosure that Chase challenges is not attributable to the state. Second, even if it were, the Court would find that the statute satisfies the requirements of the Due Process Clause. Finally, in any event, the Court would apply the doctrine of constitutional avoidance to interpret the statute to comply with the Constitution.

1. State Action Requirement

a. Applicable Law

The Fourteenth Amendment protects citizens from unlawful action by the government, but does not regulate the conduct of private individuals or entities. Apao v. Bank of New York, 324 F.3d 1091, 1093 (9th Cir. 2003). Accordingly, “in cases involving foreclosures or seizures of property to satisfy a debt, ... the procedures implicate the Fourteenth Amendment only where there is at least some direct state involvement in the execution of the foreclosure or seizure.” Id. The Supreme Court has repeatedly held that state action has two requirements: (1) “an alleged constitutional deprivation caused by the exercise of some right or privilege created by the State or by a rule of conduct imposed by the State or by a person for whom the State is responsible,” and (2) “that the party charged with the deprivation must be a person who may fairly be said to be a state actor.” Am. Mfrs. Mut. Ins. Co. v. Sullivan, 526 U.S. 40, 50, 119 S.Ct. 977, 143 L.Ed.2d 130 (1999) (internal quotation marks omitted).

The fact that a business is subject to state regulation “does not by itself convert its action into that of the State for purposes of the Fourteenth Amendment.” Id. at 52, 119 S.Ct. 977 (internal quotation marks omitted). Moreover, “[a]ction taken by private entities with the mere approval or acquiescence of the State is not state action.” Id. Private entities are not subject to the requirements of the Fourteenth Amendment “unless there is a sufficiently close nexus between the State and the challenged action of the regulated entity so that the action of the latter may be fairly treated as that of the State itself.” Id. (internal quotation marks omitted). A “sufficiently close nexus” exists where the state “has exercised coercive power or has provided such significant encouragement, either overt or covert, that the choice must in law be deemed to be that of the State.” Id. (quoting Blum v. Yaretsky, 457 U.S. 991, 1004, 102 S.Ct. 2777, 73 L.Ed.2d 534 (1982)). This nexus does not exist—and thus there is no state action—where the action was taken “with the mere approval or acquiescence of the State.” Am. Mfrs., 526 U.S. at 52, 119 S.Ct. 977.

b. The HOA’s Foreclosure Does Not Constitute State Action

In this case, the Court finds that the state action requirement has not been satisfied by the HOA’s nonjudicial foreclosure sale carried out pursuant to N.R.S. 116.3116. Chase has' successfully established’ the first element of state action; the parties do not dispute that the foreclosure sale, and the alleged extinguishment of Chase’s interest in the Property, was “caused by the exercise of some right or privilege created by the State.” Id. at 50, 119 S.Ct. 977. Chase has not shown, however, that the alleged deprivation was caused by a person fairly said to be a state actor.

The Court begins its analysis of whether a state actor was involved by identifying the specific action by Defendants of which Chase complains. Id. at 51, 119 S.Ct. 977. Chase has brought suit against SFR, the HOA, ATC, and the Reinhards—all private parties. Chase has not named any public officials as defendants in this action, nor does it allege the direct involvement of any state officials in the foreclosure. Chase does allege other issues with the sale, however. Chase asserts that the sale was commercially unreasonable, that ATC did not include the super-priority portion of the HOA lien in any of the pre-sale notices, that the sale does not extinguish Chase’s interest under the Deed of Trust, and that the sale is preempted by HUD’s insurance interest. Thus, the Court must analyze whether ATC’s and the HOA’s foreclosure on the Property, and SFR’s action of purchasing the Property at the foreclosure sale and claiming title to that property pursuant to N.R.S. 116.3116, are fairly attributable to the state.

The Court does not find that standard to be met in this case. As discussed in Section IV.B above, Nevada’s HOA lien statute authorizes, but does not require, HOAs to obtain a superpriority lien against real property for nine months of unpaid assessments by following the procedures set forth in N.R.S. 116.31162 through N.R.S. 116.31168. The decision to actually foreclose and extinguish a prior recorded interest is made by private parties. There is no provision for involvement by state officials in the foreclosure process other than the requirement that the HOA file certain documents in the county recorder’s office. The enactment of this statute is not enough to constitute the exercise of “coercive power” or “significant encouragement” by the state so as to constitute state action. Am. Mfrs., 526 U.S. at 52, 119 S.Ct. 977. While the state’s enactment of the statute “can in some sense be seen as encouraging” HOAs to foreclose according to the notice provisions in the statute, “this kind of subtle encouragement is no more significant than that which inheres in the State’s creation or modification of any legal remedy.” Id. at 53, 119 S.Ct. 977; see also Tulsa Prof. Collection Servs., Inc. v. Pope, 485 U.S. 478, 485, 108 S.Ct. 1340, 99 L.Ed.2d 565 (1988) (“Private use of state-sanctioned private remedies or procedures does not rise to the level of state action.”).

Chase’s constitutional challenge must therefore be denied for failure to establish state action. See Apao, 324 F.3d at 1095 (holding that a lender’s nonjudicial foreclosure conducted pursuant to state statute did not constitute state action, and noting that any procedural concerns due to the fact that the sale was conducted by a self-interested lender “do not relate to the threshold, and here dispositive question as to whether there was state action”); Charmicor v. Deaner, 572 F.2d 694, 695 (9th Cir. 1978) (holding that a trustee’s sale conducted pursuant to Nevada’s nonjudicial foreclosure statute did not amount to state action, and stating that “[t]he statutory source of the Nevada power of sale ... does not necessarily transform a private nonjudicial foreclosure into state action ...’. [T]he statute creates only the right to act; it does not require that such action be taken.”) (citation and internal quotation marks omitted).

2. Procedural Due Process

Even if the Court were to find that a nonjudicial foreclosure conducted pursuant to Nevada’s HOA lien statute constituted state action, it would nonetheless deny Chase’s' constitutional challenge because the statute does not violate the Due Process Clause.

a. Applicable Law

The Fourteenth Amendment to the U.S. Constitution states, in relevant part, that no state shall “deprive any person of life, liberty, or property, without due process of law[.]” U.S. Const. Amend. V. “An elementary and fundamental requirement of due process in any proceeding which is to be accorded finality is notice reasonably calculated, under all the circumstances, to apprise interested parties of the pendency of the action and afford them an opportunity to present their objections.” Mullane v. Central Hanover Bank & Trust Co., 339 U.S. 306, 314, 70 S.Ct. 652, 94 L.Ed. 865 (1950). “The means employed [to provide notice] must be such as one desirous of actually informing the absentee might reasonably adopt to accomplish it.” Id. at 315, 70 S.Ct. 652.

When a party asserts an unconstitutional deprivation of property under the Due Process Clause, the court must first decide whether the party possessed a property interest and, if so, whether it is of the type protected by the Due Process Clause. Portman v. Cnty. of Santa Clara, 995 F.2d 898, 904 (9th Cir. 1993). A mortgagee “clearly has a legally protected property interest.” Mennonite Bd. of Missions v. Adams, 462 U.S. 791, 798, 108 S.Ct. 2706, 77 L.Ed.2d 180 (1983). Where the mortgagee’s interest is publicly recorded and the mortgagee is reasonably identifiable, due process requires that the mortgagee be notified of a proceeding that may affect his or her interest “by notice mailed to the mortgagee’s last known available address, or by personal service.” Id. Notice by publication and notice to the property owner are not enough, as these methods “cannot be expected to lead to actual notice to the mortgagee.” Id. at 799, 103 S.Ct. 2706. “Personal service or mailed notice is required even though sophisticated creditors have means at their disposal” to find out whether assessments have been paid or a sale is pending against the property in which they claim an interest. Id.

Under the “well-established principle” of constitutional avoidance, “statutes will be interpreted to- avoid constitutional difficulties.” Fair Hous. Council v. Roommate.com, LLC, 666 F.3d 1216, 1222 (9th Cir. 2012). (quoting Frisby v. Schultz, 487 U.S. 474, 483, 108 S.Ct. 2495, 101 L.Ed.2d 420 (1988)). “[I]f an otherwise acceptable construction of a statute would raise serious constitutional problems, and where an alternative interpretation of,the statute is fairly possible, [the court is] obligated to construe the statute to avoid such problems.” I.N.S. v. St. Cyr, 533 U.S. 289, 300, 121 S.Ct. 2271, 150 L.Ed.2d 347 (2001) (internal quotation marks omitted). The canon of constitutional avoidance “rest[s] on the reasonable presumption that [the legislature] did not intend the alternative which raises serious constitutional doubts.” Clark v. Martinez, 543 U.S. 371, 381, 125 S.Ct. 716, 160 L.Ed.2d 734 (2005). This principle “does not, however, license a court to usurp the policy-making and legislative functions of duly-elected representatives.” Rodriguez v. Robbins, 715 F.3d 1127, 1133-34 (9th Cir. 2013) (quoting. Heckler v. Mathews, 465 U.S. 728, 741, 104 S.Ct. 1387, 79 L.Ed.2d 646 (1984)). Therefore, if the alternative construction of the statute is “plainly contrary to the intent” of the legislature, the doctrine does not apply. Fair Hous. Council, 666 F.3d at 1222.

b. N.R.S. 116.3116 Does Not Violate the Due Process Clause

The Court concludes that N.R.S. 116.3116 comports with the requirements of the Due Process Clause. In its brief, Chase attempts to characterize the notice provisions of N.R.S. 116.3116 as “opt-in” provisions that do not mandate notice to an interested party unless that party affirmatively requests it. The Court disagrees and finds that the notice provisions of N.R.S. 116.3116 mandate notice to holders of deeds of trust and other recorded interests as due process requires. There are two reasons for this conclusion.

First, as recognized by the Nevada Supreme Court in SFR, the Nevada HOA lien statute expressly incorporates the provisions of N.R.S. 107.090, which “govern[ ] notice to junior lienholders and others in deed-of-trust foreclosure sales.” 334 P.3d at 408. Under these provisions, the trustee or other person authorized to record the notice of default and conduct the sale must send by registered or certified mail, with return receipt requested and postage prepaid, a copy of the notice of default and the notice of sale to “[e]ach person who has requested a copy of the notice” and “[e]ach other person with an interest whose interest or claimed interest is subordinate to the deed of trust.” N.R.S. 107.090(3)(b), (4). Because “[t]he provisions of N.R.S. 107.090 apply to the foreclosure of an association’s lien as if a deed of trust were being foreclosed,” N.R.S. 116.31168 (2014), the Court finds that the Nevada HOA lien statute requires the notice of default and election to sell and the notice of sale to be sent to every person with an interest or claimed interest that is subordinate to the HOA’s superpriority lien—a class of persons that includes holders of deeds of trust such as Chase, whose interests are subordinate to an HOA’s lien to the extent of nine months of unpaid assessments. See SFR, 334 P.3d at 411.

Second, insofar as the procedures set forth in the HOA lien statute might raise due process concerns, the Court would apply the canon of constitutional avoidance to interpret the statute so as to eliminate those concerns. Read in isolation (and without reference to the provisions of N.R.S. 107.090), the HOA lien statute could lead its readers to the conclusion that HOAs are not required to give notice of impending HOA foreclosures to lenders absent an affirmative request. But the statute is susceptible to an alternative (and equally reasonable) construction that avoids this constitutional problem. Under this alternative construction, the holder of a recorded security interest in a parcel of real property has “notified” and “requested notice” from an HOA by simply publicly recording its interest, thereby triggering the HOA’s duty under the statute to provide notice to the interest holder of its election to sell and the sale itself. This is consistent with the principle in Nevada law that by recording a deed of trust or other conveyance of real property, an interest holder has “impart[ed] notice to all persons of the contents thereof.” N.R.S. 111.320. Therefore, even if it were to find that the statute could be construed in a way that offended due process, the Court would adopt an interpretation requiring HOAs to give notice of default and sale to all persons with a recorded interest in the property at issue. Under this construction of the statute, no further affirmative act by the recorded interest holder would be necessary beyond the recording of the instrument.

For these reasons, the Court rejects Chase’s challenge to N.R.S. 116.3116 under the Due Process Clause.

D. Property Clause Challenge to N.R.S. 116.3116

Chase also argues that HUD holds an interest in the Deed of Trust through its contract of insurance and that extinguishment of the Deed of Trust would therefore violate the Property Clause of the U.S. Constitution. This argument has been raised—and rejected—by at least one other court in this District. See Freedom Mortg. Corp. v. Las Vegas Dev. Grp., LLC, 106 F.Supp.3d 1174, 1179-82 (D. Nev. 2015). This Court agrees with the analysis and result in Freedom Mortgage and will draw upon that analysis in setting forth its similar reasoning and conclusions here. The Court finds that Chase does not have standing to bring a Property Clause claim on behalf of HUD. Even if Chase had standing,: the Court would find that the HOA foreclosure sale in this case did not violate the Property Clause.

1. Applicable Law

Under the Property Clause of the Constitution of the United States, “Congress has the Power to dispose of and make all needful Rules and Regulations respecting the Territory or other Property belonging to the United States.” U.S. Const. Art. IV, § 3, cl'. 2. Accordingly, title to the United States’s property can only be divested by an Act of Congress. Beaver v. United States, 350 F.2d 4, 8 (9th Cir. 1965).

The term “property” under the Property Clause includes not only territory, but also “all other personal and real property rightfully belonging to-the United States.” Ashwander v. Tenn. Valley Auth., 297 U.S. 288, 831, 56 S.Ct. 466, 80 L.Ed. 688 (1936). This definition includes mortgage interests held by federal instrumen-talities. Rust v. Johnson, 597 F.2d 174, 177 (9th Cir. 1979). Neither the Supreme Court nor the Ninth Circuit has held, however, that a federal insurance policy on a private loan gives the federal government a property interest protected by the Property Clause.

Here, Chase seeks to invoké the Property Clause on the basis of a purported property interest held by HUD, which is not a party to this case. For this court to have jurisdiction over a case, “the party bringing the suit must establish standing.” Elk Grove Unified Sch. Dist. v. Newdow, 542 U.S. 1, 11, 124 S.Ct. 2301, 159 L.Ed.2d 98 (2004), abrogated in part on other grounds in Lexmark Int’l, Inc, v. Static Control Components, Inc., — U.S. -, 134 S.Ct. 1377, 1387, 188 L.Ed.2d 392 (2014). The standing doctrine encompasses two parts: “a constitutional component, rooted in the Constitution’s case-or-controversy requirement, and a prudential component, which, embraces judicially self-imposed restraints on federal jurisdiction. A litigant must satisfy both to seek redress in federal court.” United States v. Lazarenko, 476 F.3d 642, 649 (9th Cir. 2007) (citations omitted).

It is the prudential component of standing that is at issue here. Prudential standing “encompasses the general prohibition on a litigant’s raising another person’s legal rights _” Id. at 649-50 (internal quotation marks omitted). “It is a well-established rule that a litigant may assert, only his own legal rights and interests and cannot rest a claim to relief on the legal rights or interests of third parties.” Coal. of Clergy, Lawyers, & Professors v. Bush, 310 F.3d 1153, 1163 (9th Cir. 2002). As this prohibition is prudential rather than1 constitutional, the Supreme Court has recognized an exception where three criteria are met: “The litigant must have suffered an ‘injury in fact,’ thus giving him or her a ‘sufficiently concrete interest’ in the outcome of the issue in dispute; the litigant must have a close relation to the third party; and there must exist some hindrance to the third party’s ability to protect his or her own interests.” Id. (quoting Powers v. Ohio, 499 U.S. 400, 410-11, 111 S.Ct. 1364, 113 L.Ed.2d 411 (1991)).

2. Chase Lacks Standing to Assert a Property Clause Challenge

The Court rejects Chase’s Property Clause challenge for lack of standing. Chase is not the proper party to bring a Property Clause challenge to the extin-guishment of the Deed of Trust and cannot meet the requirements for third-party standing. Therefore, it may not assert a Property Clause claim.

Chase falls within the general prohibition on asserting a third party’s rights encompassed by the doctrine of prudential standing. In its Property Clause challenge, Chase attempts to assert an interest (in the form of a policy insuring the Deed of Trust) belonging to HUD, not Chase. HUD is not a party to this action, and to the extent it possesses a protected interest in the Property, it has not attempted to assert it in this case. HUD is perfectly capable of protecting its own rights if it so chooses. Federal law authorizes the Secretary of HUD, “in carrying out the provisions of this subchapter” and other sub-chapters with respect to national housing, mortgages, and mortgage insurance, “to sue and be sued in any court of competent jurisdiction, State or Federal.” 12 U.S.C. § 1702. Chase has produced no evidence of any assignment of HUD’s rights to itself, nor has it pointed to any authority that would authorize such an assignment.

Moreover, Chase has not satisfied the limited exception to the bar on third-party standing. Chase has not produced evidénce of any hindrance to HUD’s ability to intervene in this suit or to bring a separate suit to protect its own interests. The Court therefore finds that Chase lacks prudential standing to challenge the HOA’s foreclosure under the Property Clause. As stated by the Supreme Court in Singleton v. Wulff:

Federal courts must hesitate before resolving a controversy, even one within their constitutional power to resolve, on the basis of the rights of third persons not parties to the litigation. The reasons are two. First, the courts should not adjudicate such rights unnecessarily, and it may be that in fact the holders of those rights either do not wish to assert them, or will be able to enjoy them regardless of whether the in-court litigant is successful or not. Second, third parties themselves usually will be the best proponents of their own rights. The courts depend on effective advocacy, and therefore should prefer to construe legal rights only when the most effective advocates of those rights are before them. The holders of the rights may have a like preference, to the extent they will be bound by the courts’ decisions under the doctrine of stare decisis,

428 U.S. 106, 113-14, 96 S.Ct. 2868, 49 L.Ed.2d 826 (1976) (citation omitted). Accordingly, the Court denies Chase’s Property Clause Challenge.

3. The Foreclosure Sale Did Not Violate the Property Clause

Even if the Court were to find that Chase had established standing to assert a Property Clause challenge on HUD’s behalf, it would deny the challenge on the merits for two reasons.

First, Chase has not identified a property interest owned by the federal government that is protected under the Property Clause. Chase argues that a federal agency’s insurance of a mortgage cre-átes a federal property interest protected by the Property Clause. The Court’s review of Ninth Circuit precedent in this area indicates that property interests have been found where the federal government actually owned the property or held the mortgage. See Rust v. Johnson, 597 F.2d 174, 177 (9th Cir. 1979) (Fannie Mae held an assignment of a purchase-money mortgage); United States v. Stadium Apts., Inc., 425 F.2d 358, 359 (9th Cir. 1970) (HUD owned the property after assignment by the bank, paid the mortgage-insurance claim, and foreclosed on the property); United States v. View Crest Garden Apts., Inc., 268 F.2d 380, 381 (9th Cir. 1959) (mortgage was assigned to the Federal Housing Administration). As discussed previously, however, Chase has not cited—and the Court has not found—any case in which the Supreme Court or the Ninth Circuit has held that a federal insurance policy on a private loan gives the federal government a property interest protected by the Property Clause. The Court declines to extend the reach of the Property Clause to prevent foreclosures on properties encumbered by HUD-insured mortgages.

' Second, to the extent that HUD’s interest in the Property is one that is protected by the Property Clause, that interest was divested by operation of federal law as laid out by HUD; therefore, the Property Clause was not violated. According to HUD’s own regulation, its contract of insurance “shall be terminated” if the property “is bid in and acquired at a foreclosure sale by a party other than the mortgagee.” 24 C.F.R. § 203.315(a)(2)®, (b)(2). HUD’s regulation providing for the termination of its insurance contract demonstrates that it consented to being divested of its interest in property under certain circumstances, one of which is when insured property is purchased at a foreclosure sale by a third party. The HOA foreclosure sale in this case therefore did not violate the Property Clause, as HUD’s interest was divested through the mechanism it provided for in its own regulation.

E. Federal Preemption

Next, Chase argues that the operation of N.R.S. 116.3116 to extinguish its Deed of Trust is preempted by HUD’s mortgage insurance program. The Court finds that federal and state law do not conflict on this issue, and thus the Supremacy Clause does not bar enforcement of N.R.S; 116.3116. In reaching this conclusion, the Court once again agrees with the legal analysis and result reached by the court in Freedom Mortgage on this issue. See 106 F.Supp.3d at 1183-86. The Court will nonetheless Chase’s • argument in full, drawing upon the analysis in Freedom Mortgage.

1. Applicable Law

The Supremacy Clause provides that the laws of the United States “shall be the supreme Law of the Land .,. any Thing in the Constitution or Laws of any State to the Contrary notwithstanding.” U.S. Const. Art. VI, cl. 2. “Under our system of dual sovereignty, courts deciding whether a particular state law is preempted under the Supremacy Clause must strive to maintain the delicate balance between the States and the Federal Government, especially when Congress is regulating in an area traditionally occupied by the States.” Gonzalez v. Arizona, 677 F.3d 383, 392 (9th Cir. 2012). “[CJourts applying the Supremacy Clause are to begin with a presumption against preemption.” Id. Courts also apply “a plain statement rule, holding that a federal statute preempts a state law only when it is the clear and manifest purpose of Congress to do so. Only where the state and federal laws cannot be reconciled do courts hold that Congress’s enactments must prevail.” Id. (citation and internal quotation marks omitted).

There are traditionally three types of preemption: express preemption, field preemption, and conflict preemption. Oneok, Inc, v. Learjet, Inc., — U.S. -, 135 S.Ct. 1591, 1595, 191 L.Ed.2d 511 (2015). “Express preemption occurs when Congress enacts a statute that expressly commands that state law on the particular subject is displaced.” Gadda v. Ashcroft, 377 F.3d 934, 944 (9th Cir. 2004). Field preemption occurs if Congress “intended to foreclose any state regulation in the area, irrespective of whether state law is consistent or inconsistent with federal standards. In such situations, Congress has forbidden the State to take action in the field that the federal statute preempts.” Oneok, 135 S.Ct. at 1595 (emphasis in original) (citation and internal quotation marks omitted). Finally, “conflict preemption exists where compliance with both state and federal law is impossible, or where the state law stands as an obstacle to the accomplishment and execution of the full purposes and objectives ■ of' Congress.” Id. (internal quotation marks omitted). Preemption can occur through federal regulations in addition to statutes. See, e.g., Norfolk So. Ry. Co. v. Shanklin, 529 U.S. 344, 351-59, 120 S.Ct. 1467, 146 L.Ed.2d 374 (finding that the Federal Railroad Safety Act preempts certain state tort claims through regulations implemented under the Act).

2. HUD’s Mortgage Insurance Program Does Not Preempt N.B.S. 116.3116

The Court finds that N.R.S. 116.3116'is not preempted by HUD’s insurance program under any of the preemption doctrines.

First, Chase has not identified, and the Court has not found, any authority expressly preempting the operation of state law in the context of HOA foreclosures on HUD-insured mortgages. Thus, express preemption does not apply.

Second, it is clear that field preemption does not apply either, as property foreclosure is not an area where Congress has demonstrated its intent to “occupy the field” of regulation. On the contrary, foreclosure of real property has traditionally been an area left to the states. See BFP v. Resolution Trust Corp., 511 U.S. 531, 544, 114 S.Ct. 1757, 128 L.Ed.2d 556 (1994) (“It is beyond question that an essential state interest is at issue here: We have said that ‘the general welfare of society is involved in the security of the titles to real estate’ and the power to ensure that security ‘inheres in the very nature of [state] government’”) (alteration in original) (quoting Am. Land Co. v. Zeiss, 219 U.S. 47, 60, 31 S.Ct. 200, 55 L.Ed. 82 (1911)); see also Rank v. Nimmo, 677 F.2d 692, 697 (9th Cir. 1982) (“mortgage foreclosure has traditionally been a matter for state courts and state law”) (citation and internal quotation marks omitted); Butner v. United States, 440 U.S. 48, 55, 99 S.Ct. 914, 59 L.Ed.2d 136 (1979) (“Property interests are created and defined by state law.”).

The only potential way in which N.R.S. 116.3116 could be preempted, therefore, is through conflict preemption. Chase argues that enforcing. N.R.S. 116.3116 to extinguish Chase’s Deed of Trust would conflict with the purposes of HUD’s insurance program, through which it insures mortgages originated by private lenders for the purpose of making housing available to all citizens. Chase contends that this program allows title to be conveyed to HUD after foreclosure on the Deed of Trust, thereby allowing HUD to replenish the funds used for the insurance program, and that enforcement of the HOA’s superpriority lien through N.R.S. 116.3116 would interfere with this structure.

The purpose and structure of HUD’s mortgage insurance program was set forth in detail in Freedom Mortgage:

As HUD’s website and various publications explain, the single-family mortgage-insurance program provides mortgage insurance to protect lenders against the risk of default on mortgages to qualified buyers. The federal regulations governing the program are contained in the Code of Federal Regulations (CFR), Title 24.. .. .•

When a HUD-insured mortgage goes into default, the lender may make a claim for the remaining principal amount owed under the loan. Typically, the lender must assign the mortgage to HUD and certify that the mortgage is prior to all liens and encumbrances, or defects which may arise except such liens or other matters as may have been approved by the Commissioner. Alternatively, the lender may foreclose, acquire title, and make a claim for the deficiency. The insurance contract shall be terminated if [t]he property is bid in and acquired at a foreclosure sale by a party other than the mortgagee—which is to say, any party except the lender. In short, a lender has two primary ways to obtain benefits under the program: (1) assign the first-position mortgage interest to HUD before foreclosure or (2) initiate foreclosure and make a claim for the deficiency.

106 F.Supp.3d at 1183-84 (footnotes, citations, and internal quotation marks omitted) (alteration in original).

The Court concludes that conflict preemption does not apply in this case. Lenders are perfectly capable of complying with both HUD’s program and N.R.S. 116.3116; in fact, HUD’s regulations expressly contemplate situations in which a lender forfeits its security interest by failing to protect it against senior interests. As described in Freedom Mortgage, when a HUD-insured mortgage goes into default, a lender has two options: (1) assign the first-position mortgage interest to HUD before foreclosure and make a claim for the remaining principal amount, or (2) initiate foreclosure and make a claim for the deficiency. 106 F.Supp.3d at 1184; 24 C.F.R. §§ 203.360, 203.351, 203.401. If it fails to protect its interest, however, the lender loses any claim to benefits; under 24 C.F.R. § 203.315, HUD’s contract of insurance is terminated where “[t]he property is bid in and acquired at foreclosure by a party other than the mortgagee.” Therefore, the lender is in control of its compliance with both HUD’s program and Nevada’s foreclosure statutes. HUD only has an interest in the property insofar as the lender conveys title or forecloses and initiates a claim. HUD’s property interest ceases once a third party buyer acquires the property at a foreclosure sale, and HUD’s decision (by virtue of 24 C.F.R. § 203.315) to terminate its contract at that point demonstrates that such foreclosures do not serve as an obstacle to HUD’s program. On the contrary, the only obstacle to HUD’s objectives appears to be the lender’s own inaction. There can thus be no conflict preemption because compliance with both state and federal law is possible and Nevada’s HOA lien statute does not serve as an obstacle to Congress’s objectives in enacting the HUD insurance program. For these reasons, Chase’s Supremacy Clause challenge fails.

F. Wrongful Foreclosure and Quiet Title Claims

Chase also argues that summary judgment should be granted in its favor on its wrongful foreclosure and quiet title claims for a variety of reasons unrelated to its constitutional challenges. Chase asserts that the foreclosure sale should be unwound or set aside because the foreclosure sale was commercially unreasonable, that ATC and the HOA did not comply with the statutory notice provisions before conducting the sale, that ATC and the HOA failed to give notice as required under the CC&Rs, that ATC unlawfully failed to disclose the superpriority portion of the HOA lien, and that ATC unlawfully included attorney’s fees and costs of collection in the lien amount.

Nevada law provides that “[a]n action may be brought by any person against another who claims an estate or interest in real property, adverse to the person bringing the action, for the purpose of determining such adverse claim.” N.R.S. 40.010. In a quiet title action, the plaintiff bears the burden of proving good title in himself, and there is a presumption favoring the record title holder. Breliant v. Preferred Equities Corp., 112 Nev. 663, 918 P.2d 314, 318 (1996) (citation omitted).

Relatedly, “[a] wrongful foreclosure claim challenges the authority behind the foreclosure, not the foreclosure act itself.” McKnight Family, L.L.P. v. Adept Mgmt., — Nev. -, 310 P.3d 555, 559 (2013). To bring a successful wrongful foreclosure claim, Chase must “establish that at the time the power of sale was exercised or the foreclosure occurred, no breach of condition or failure of performance existed on [Chase’s] part which would have authorized the foreclosure or exercise of the power of sale.” Collins v. Union Fed. Sav. & Loan Ass’n, 99 Nev. 284, 662 P.2d 610, 628 (1983). Courts in Nevada possess the inherent power “to grant equitable relief from a defective foreclosure sale when appropriate.” Shadow Wood HOA v. N.Y. Cmty. Bancorp., — Nev. -, 366 P.3d 1106, 1110 (2016). However, “demonstrating that an association sold a property at its foreclosure sale for an inadequate price is not enough to set aside that sale; there must also be a showing of fraud, unfairness, or oppression.” Id. at 1112.

In light of recent case law from the Nevada Supreme Court, this Court finds that Chase has not met its burden of demonstrating good title to the Property or the elements of any of its wrongful foreclosure claims, nor has it established equitable grounds to set aside the foreclosure sale. The Court therefore grants summary judgment in favor of Defendants on Chase’s quiet title and wrongful foreclosure claims. The Court considers, and rejects, each of Chase’s arguments in support of these claims in turn.

1. Tender

First, Chase argues that the HOA’s superpriority lien was discharged by MetLife’s tender of payment to Hampton & Hampton on October 7, 2011. The Court rejects this contention because the payment tendered by MetLife was in satisfaction of an entirely separate HOA hen.

In its brief, Chase appears to argue that MetLife’s tender of payment forever discharged the superpriority lien and that the HOA’s subsequent enforcement .of the lien was an attempt to resuscitate that lien by successive enforcement action. Chase cites to a report from the Joint Editorial Board for Uniform Real Property Acts (JEB), an arm of the Uniform Law Commission, which found that the Uniform Common Interest Ownership Act of 1982 (UCIOA6 was -not intended to authorize successive hen enforcement actions to extend the su-perpriority hen beyond the statutorily authorized period.

The Court does not disagree with the JEB’s interpretation of the UCIOA. But that is not what happened in this case. The evidence in this case demonstrates that MetLife’s tender of payment on October 7, 2011 discharged the 2011 hen recorded by Hampton & Hampton—a fact acknowledged by the HOA when its agent recorded a Notice of Rescission on October 21,' 2011. In 2012, howéver, the HOA commenced enforcement proceedings on a separate hen based upon the Reinhards’ default on HOA assessments beginning in November 2011—after the rescission of the Hampton & Hampton lien. The HOA’s second hen, which was noticed in 2012 and foreclosed upon by sale in 2014, was based upon unpaid assessments and late fees dating from November 1, 2011 onward. Chase has produced no evidence of an attempt to tender payment in satisfaction of the second HOA hen.

Chase has not presented, and the Court has not found, any authority stating that an HOA -is precluded from bringing multiple enforcement actions to enforce entirely separate hens (with superpriority portions) for unpaid assessments against the same parcel of property. Chase’s reliance on the JEB report for this proposition is unavailing. The JEB report, citing to an unpublished Connecticut case, states that the UCIOA does not ahow HOAs “to assert a first hen priority for more than six months of unpaid common expense assessments in the context of the same foreclosure proceeding by [the bank].” Rep. of Joint Editorial Bd. for Uniform Real Prop. Acts at 14 (June 1, 2013) (“JEB Report”) (citing Lake Ridge Condo. Ass’n. Inc. v. Vega, No. NNH-cv-116021568S, 2012 WL 6634905 (Conn. Super. Ct. Nov. 30, 2012)). But in the JEB Report example and the Lake Ridge case, the association was attempting to enforce the superpriority portion of its lien multiple times during the pendency of the same bank foreclosure action. See JEB Report at 13; Lake Ridge, 2012 WL 6634905 at *1-2. Here, Chase had no foreclosure action pending during either period of time when the HOA attempted to foreclose on its lien for assessments. Moreover, the policy rationale for preventing the association from repeatedly asserting the superpriority portion of its lien while the same bank foreclosure action is pending—namely, that allowing such successive liens would deter banks from ever paying off the original lien so as not to create another superpriority lien-does not apply with the same force in a case where, as here, the bank never attempted to foreclose. .

The Court therefore declines to adopt Chase’s position that the superpriority portion of an HOA’s lien for assessments is a one-shot offer that, once discharged, can never be asserted again. Such a holding would be contrary to the purposes of Nevada’s HOA lien statute, one of which is to encourage the collection of needed HOA funds and avoid adverse impacts on other residents. See SFR, 334 P.3d at 417. For these reasons, Chase’s tender argument fails.

2. Compliance with the Notice Provisions of N.R.S. Chapter 116 and the CC&Rs

'Next, Chase argues that the HOA both procedurally and substantively failed to comply with the notice requirements of the HOA lien statute and the CC&Rs. The Court rejects both aspects of this argument.

Chase’s procedural argument is twofold. First, Chase argues that the HOA has not shown that it complied with N.R.S. 116.31163, which at the time required that the Notice of Default and Election to Sell be mailed by first-class mail and not simply by certified mail. The evidence demonstrates and the Court finds, however, that on August 1, 2012, the HOA mailed a copy of the Notice of Default and Election to Sell on August 1, 2012 by first-class mail to MetLife, Chase’s predecessor in interest, in accordance with N.R.S. 116.31163. See ECF No. 68 Ex. A-l. Second, Chase contends that the HOA has not shown that it fulfilled Section 17.3(b) of the CC&Rs, which requires that notice of any delinquency in assessments be sent to the holder of a first security interest. While Defendants appear to concede that the Notice of Delinquent Assessment was not sent to Chase, Chase has not cited to any authority which establishes that &• foreclosure sale can be invalidated by an HOA’s failure to comply with such a requirement in its own CC&Rs. To the contrary, this argument is foreclosed by N.R.S. 116.1104, which states that absent express statutory language to the contrary, Chapter 116’s provisions “may not be varied by agreement, and rights conferred by it may not be waived.” Chapter 116 does not expressly provide that a declaration can set forth additional notice requirements that, unless satisfied, negate the status of the superpri-ority portion of an HOA’s hen. The HOA’s apparent failure to comply with Section 17.3(b) therefore is not a basis upon which Chase may prevail on its quiet title claim. See SFR, 334 P.3d at 418-19 (holding that the bank’s argument that a mortgage savings clause in the CC&Rs subordinated the HOA’s superpriority lien was defeated by N.R.S. 116.1104, and stating that “[t]he mortgage sayings clause thus does not affect N.R.S. 116.3116(2)’s application in this case”).

Substantively, Chase argues that the notices provided by the HOA regarding foreclosure of its hen were insufficient because they did not contain a calculation of the superpriority hen amount and because they impermissibly included collection costs and fees. The Court rejects Chase’s argument that the 2013 HOA hen statute required that the HOA specify the portions of the hen that are accorded su-perpriority status. The 2013 HOA hen statute merely required that the written notice “[describe the deficiency in payment.” N.R.S. 116.31162(l)(b)(l) (2013). It did not require an HOA. to break down its statement of the hen