Super lien

A super lien is a lien that state law places ahead of a first mortgage even though it was recorded later. The term most often refers to the priority some states give part of an HOA or condominium association lien, usually a limited number of months of unpaid assessments plus certain costs.

Nevada is the best-known example. Under NRS 116.3116, a portion of the association's lien, generally up to nine months of assessments before the notice of default plus some charges, has priority over the first deed of trust, and the Nevada Supreme Court held in 2014 that a proper foreclosure of that portion can extinguish the first deed of trust. A 2015 change, now in NRS 116.31166, lets a lender that pays the priority amount at least five days before the sale keep its loan. Other states with super lien statutes set the priority amount differently. An HOA foreclosure in a super lien state needs careful title review, since the effect on the mortgage depends on the statute and the notices given. Rules vary by state; confirm with a local real estate attorney.

Source: leg.state.nv.us