"First American alleges that Novad failed to disclose the 2024 enforcement action and its subsequent settlement with HUD while assuring repayment of outstanding debts."
"The complaint states that Novad stopped making payments in February 2023 and has not disputed the outstanding balance, which exceeded $1 million as of September 2023."
"Despite repeated inquiries from First American, Novad has refused to respond and concealed its settlement with HUD, raising concerns about the company's financial condition."
First American has filed a lawsuit against Novad for failing to pay for lien release services performed in 2022 under a master services agreement. Novad attributed its nonpayment to a dispute with HUD, promising to pay once it recovered funds. However, after settling with HUD in September 2025, Novad did not inform First American and ceased communication. The lawsuit claims Novad concealed its settlement and financial condition, leading to concerns about asset concealment. The total amount sought by First American has grown to over $1.6 million due to accrued interest.
Read at www.housingwire.com
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