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49 July 2024 July 2024 » C O U N S E L ' S C O R N E R and handling of the sale itself. An HOA sale or a foreclosure sale is conducted by a sheriff, and they follow the same rules at that point. Q: How does the ruling in this case impact the foreclosure space? Hladik: The direct impact is on holders of first mortgage liens who can lose their liens as a result of an HOA foreclosure sale. There is not much impact on the mortgage foreclosure space, but foreclosure attorneys will have to be especially mindful in reviewing title searches during foreclosures to check whether there are any open HOA foreclosures or scheduled sales that could impact the lender's mortgage. Q: Do "first mortgage" rules change state-by-state, or is there a uniform ruling on the definition of a "first mortgage?" Hladik: The legal term of art "first mortgage" is generally understood around the country to mean the first mortgage lien on a property. It is interesting in this case how the Trial Court took the term "first mortgage" to mean the "initial" mortgage on a property (i.e., a purchase money mortgage). Q: What do you and the teams from Legal League and ALFN hope to achieve by filing this Brief of Amicus Curiae? Hladik: The efforts and advocacy of the Legal League and ALFN are important for the mortgage servicing industry. Key appellate cases like this could have a considerable impact on the mortgage lending industry. As such, it is important to get the voice of the industry in front of the Appellate Court and to help explain some of the intricacies of mortgage and title law that come into play. It is our hope that these efforts lead to a reversal of the Trial Court, and a clear articulation that a foreclosure sale conducted by an HOA cannot divest a first mortgage lien. Q: Any final comments? Hladik: We genuinely appreciate the efforts of the Advisory Council of the Legal League and the Amicus Briefs Committee of the ALFN for their work in producing and editing this brief on this legal issue. It takes a great commitment of time to produce these Amicus Briefs, and we appreciate how members from both organizations donated their time to this important case. Key appellate cases like this could have a considerable impact on the mortgage lending industry." —Stephen M. Hladik, Attorney, Legal League Chair