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LetA (Nevada)
Posts: 2,679
Posted:
So the BOD decides to foreclose, now what? Please walk me through the process. The Board President signs off on the ATP, Now what? Who is supposed to file the paperwork.
Is the intent to foreclose filed with the County Recorder before or after the auction?
AugustinD
Posts: 1,027
Posted:
Quote:
Posted By LetA on 10/14/2022 11:53 AM
So the BOD decides to foreclose, now what? Please walk me through the process.
So you and your board just want to wing it, attorney optional, eh? This is despite your HOA having a history of botching foreclosures, per https://www.hoatalk.com/Search/ForumSearch/tabid/87/forumid/1/postid/336542/view/topic/Default.aspx ?

I get it: Nonjudicial foreclosure is allowed under Nevada law. Nevada law seems pretty generous to HOAs when it comes to foreclosures. More generous to HOAs than to banks, it seems. But litigation in Nevada over HOA foreclosures still happens.

So you want HOATalk.com's cookbook version of how to do a foreclosure in Nevada.

Sure. Coming right up.

JohnC46 (South Carolina)
Posts: 14,265
Posted:
Leta

The association's attorney, or one hired to do the foreclosure, should now take the lead as the process is loaded with legal land mines. Our attorney's practice has a group devoted to liens, collections, foreclosures, etc. The BOD decision is will this be economically feasible to do so? Their job is to decide what to do, not do it.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Quote:
Posted By JohnC46 on 10/14/2022 12:23 PM
Leta

The association's attorney, or one hired to do the foreclosure, should now take the lead as the process is loaded with legal land mines. Our attorney's practice has a group devoted to liens, collections, foreclosures, etc. The BOD decision is will this be economically feasible to do so? Their job is to decide what to do, not do it.

ADD ON

From one MC to a BOD:

FORECLOSURES UNDER POWER OF SALE

Stage 1-- Open file, courthouse research
prepare and file Claim of Lien and send demand letter: $400.00

Stage 2A – Draft and send pre-foreclosure letter and updated account statement: $75.00

Stage 2 – Schedule hearing; prepare, file and serve foreclosure proceeding notices: $325.00

Stage 3–Prepare for and conduct foreclosure hearing: $250.00

Stage 4–Conduct foreclosure sale: $150.00

TOTAL $1200.00
MarkM19 (Texas)
Posts: 1,459
Posted:
Would anyone on your board perform surgery on themselves? Okay that's extreme I agree but if you do not follow the procedures you are guaranteed to fail. I am sure HOA funds have been spent to this point and they will be wasted. Spend the money and get the professional help needed to complete the process. You still have a ways to go and if someone is holding a First mortgage they will swoop in and foreclose right in front of you.

LetA (Nevada)
Posts: 2,679
Posted:
Quote:
Posted By AugustinD on 10/14/2022 12:19 PM
Posted By LetA on 10/14/2022 11:53 AM
So the BOD decides to foreclose, now what? Please walk me through the process.
So you and your board just want to wing it, attorney optional, eh? This is despite your HOA having a history of botching foreclosures, per https://www.hoatalk.com/Search/ForumSearch/tabid/87/forumid/1/postid/336542/view/topic/Default.aspx ?

I get it: Nonjudicial foreclosure is allowed under Nevada law. Nevada law seems pretty generous to HOAs when it comes to foreclosures. More generous to HOAs than to banks, it seems. But litigation in Nevada over HOA foreclosures still happens.

So you want HOATalk.com's cookbook version of how to do a foreclosure in Nevada.

Sure. Coming right up.


No Augie, I am asking so I don't go off half cocked. The ATP was signed 31 days ago at the last meeting during executive session. The PM said the process should take about
30 day. So far crickets. I am considering asking the other two board members if we should explore hiring a new PMC and the possibility if we have a case against the PMC for specific performance.
I can cite several items that were half-assed fixed, for one the electric panel repair that would NEVER pass inspection. As to the aforementioned issue, I have been checking daily both the County
Recorders site and the Sheriffs sale cite, and I have been checking the MLS listings so far nothing has been filed. This is far too much money for the HOA to have to write off as a bad debt.
IMHO that ATP should have been rushed to the office while the ink was drying to file the necessary paperwork. Yes Nevada HOA's still have a super priority, but I still think we should be first in line.
MaxB4
Posts: 3,513
Posted:
So a first mortgage has a debt of $500K and the HOA has a lien for $1800.00, the HOA should be paid first and your reasoning?

If lenders stop lending in those stupid super priority states, what do you think happens to your precious HOA's?
AugustinD
Posts: 1,027
Posted:
Quote:
Posted By LetA on 10/14/2022 12:55 PM
No Augie, I am asking so I don't go off half cocked. The ATP was signed 31 days ago at the last meeting during executive session. The PM said the process should take about
30 day. So far crickets. [snip]

As to the aforementioned issue, I have been checking daily both the County Recorders site and the Sheriffs sale cite, and I have been checking the MLS listings so far nothing has been filed. This is far too much money for the HOA to have to write off as a bad debt. IMHO that ATP should have been rushed to the office while the ink was drying to file the necessary paperwork. Yes Nevada HOA's still have a super priority, but I still think we should be first in line.
Well you did not respond with snark to my snarky post, so I will try to give constructive "direction." Which to be blunt, will be exactly the same as going off half-cocked.

Anyway, at least there may be some learning here. It might end up being learning via the School of Hard Knocks, but there are worse schools of higher education.

To begin:

LetA, who is the Authorized Third Party (ATP)? The PM?

You think the ATP should have been rushed to what office? The County Clerk? The PM's office, so it could then record the necessary paperwork with the County Clerk?

How come you have not read sites like this: https://www.nolo.com/legal-encyclopedia/nevada-hoa-foreclosures.html and followed the directions at this site (checking with the cited Nevada statute sections)? From the latter web site:

==== Start Parroting of Web Site ======
HOA Lien Foreclosures in Nevada
In Nevada, the HOA may hold a foreclose sale and sell the property to a new owner after sending the homeowner a notice of delinquent assessments, recording a notice of default and election to sell, and providing notice of the foreclosure sale.

Notice of Delinquent Assessments Before Foreclosure Starts
Before starting the foreclosure, the HOA must mail a notice of delinquent assessment by certified or registered mail, return receipt requested, to the homeowner, which states:

-- the amount of the assessments and other sums that are due
-- a description of the unit against which the lien is imposed, and
-- the name of the record owner of the unit. (Nev. Rev. Stat. § 116.31162).

Notice of Default and Election to Sell
Not less than 30 days after mailing the notice of delinquent assessment, the association has to then record a notice of default and election to sell (NOD) with the county recorder. The NOD must contain much of the same information as the notice of delinquent assessment, along with a warning that if you don't pay the delinquent amount, you could lose your home, even if the amount is in dispute. The HOA must also mail a copy of the NOD to you, the homeowner. (Nev. Rev. Stat. § 116.31162).

The homeowner (or successor in interest) may pay the amount of the lien, including costs, fees, and expenses pertaining to its enforcement for 90 days after the notice of default and election to sell is recorded or the date when notice of default was mailed to the owner, whichever is later. (Nev. Rev. Stat. § 16.31162).

Notice of the Foreclosure Sale
After the 90-day period described above expires and before selling the unit, the association has to give notice of the time and place of the sale by:

-- recording a notice of sale
-- posting a similar notice describing the property, for 20 consecutive days, in a public place in the county, and
-- publishing a copy of the notice three times, once each week for three consecutive weeks, in a newspaper of general circulation in the county.

The association must also mail the notice to the unit owner (or successor in interest) on or before the notice's first publication or posting date. A copy of the notice of sale also has to be served to an occupant of the property who is of suitable age. Or it has to be served by posting a copy of the notice of sale in a conspicuous place on the unit. (Nev. Rev. Stat. § 116.311635).

==== End Parroting of Web Site ====

LetA, exactly where is the HOA in completing these steps?
LetA (Nevada)
Posts: 2,679
Posted:
When I used ATP I mean Authorize to Publish, Where are we at, The ATP has been signed and according to the PM submitted to the collection agency.
As for the nolo sites and such, I can't get through the ads and pop-ups that blanket my search. I get less than a sentence or two of content then a bunch of ads then a sentence or
two of content. So we are between steps one and two, at this point I have no clue if the CA has started their requirement.
So can the registered certified letter and going to the recorders office happen simultaneously or is the party served given a X days to respond?

BTW an communication from our PM an hour ago said it has been sent to the CA and is out of our hands, HUH WTF!!!

I just don't get it, how is it out of our hands?

Would I be a D WORD for Richard asking the PM to request a copy of proof the CA sent the certified letter to the HO and asking
when they will be going to the recorders office?
MarkM19 (Texas)
Posts: 1,459
Posted:
LetA,
Sorry for asking a question that I should know. Were you elected to the board in the last election? If you are on the board, you have every right to challenge the PM. The HOA and board paid the service charge for the Certified Mail if that was how it was done. I think it is your job to question things and the process. It is how you will grow as a board member.

LetA (Nevada)
Posts: 2,679
Posted:
Thank You Tim but those 2009 docs are old NRS 116 was amended 2012 and I believe 2016
HOA's are required to notify the mortgage holder their intent to foreclose, the mortgage holder then sends the HOA
9 mos of assessments in arrears. We have already been down this road once. The Homeowner hasn't paid
assessments in almost 4 years.
LetA (Nevada)
Posts: 2,679
Posted:
Quote:
Posted By MaxB4 on 10/14/2022 1:21 PM
So a first mortgage has a debt of $500K and the HOA has a lien for $1800.00, the HOA should be paid first and your reasoning?

If lenders stop lending in those stupid super priority states, what do you think happens to your precious HOA's?

I'd rather be first in line than praying some noodle does their job between a title search and contacting the PM if any monies are due the HOA.
Been down that road Max and the HOA got royally screwed by another deadbeat and a PMC and collection agency that didn't file a lien.
Cover cost us to lose some meat off that bone, but I digress meh!
MelissaP1 (Alabama)
Posts: 13,836
Posted:
1. Hire a lawyer.
2. Official notice is sent to the HOA address and/or owner via certified letter.
3. It is published in a PUBLIC resource for like 30 days intent on foreclosing. (Atleast 3 times). Have to pay for the ad space.
4. The owner can pay up and the foreclosure stops.
5. The owner does not pay up and the process continues.
6. The property goes up for auction. Our area it's on the courthouse steps.
7. The HOA gets the first bid (Owner can still show up at the auction). It is usually $1 over what is owed.
8. A person bids on the property and wins. They have to pay the foreclosure sale prices. Plus they have to take over the mortgage if there is one. Pay the taxes. Now take up the HOA dues on the property.
9. Right to Redemption period begins. Some states it is 0 days. Other states it is up to a year. What this means is the original owner can buy back the property by paying debt they owe. The new owner may NOT want to do any improvements during this time because they are NOT guaranteed to get any of their expenses back IF the owner buys it back. All their money will go down the drain. Hence why the property can sit empty/untouched for a year.
10. The bank gets paid first even in a "Superior lien" states. The difference is a Superior lien puts you on the SAME footing as the bank if any money is paid back. Not necessarily 2nd in line for the leftovers. Most foreclosure the owner doesn't have the money to pay anyone. So it's a wash.

A foreclosure is just a "Stop the bleeding" measure. There is no profit in it for the HOA. It's just filling up the hole and hoping the new owner keep up the dues payments.

Former HOA President
MarkM19 (Texas)
Posts: 1,459
Posted:
Melissa,
Thanks for the detailed step by step. It is the most accurate I have ever seen. I save it for future use if things get bad again.

The only foreclosure I have ever seen to completion ended the Big Bank foreclosing in front of at the Court house. The positive thing about that it they then own the home and will pay the dues.
AugustinD
Posts: 1,027
Posted:
Quote:
Posted By LetA on 10/14/2022 3:33 PM
When I used ATP I mean Authorize to Publish, Where are we at, The ATP has been signed and according to the PM submitted to the collection agency. [snip] [W]e are between steps one and two, at this point I have no clue if the CA has started their requirement.
So can the registered certified letter and going to the recorders office happen simultaneously or is the party served given a X days to respond?

BTW an communication from our PM an hour ago said it has been sent to the CA and is out of our hands, HUH WTF!!!

I just don't get it, how is it out of our hands?

Would I be a D WORD for Richard asking the PM to request a copy of proof the CA sent the certified letter to the HO and asking
when they will be going to the recorders office?
-- I see no requirement to wait for a response from the owner to the certified letter.

-- Prudence says to wait at least one day after the postmarked date on the certified letter to record the NOD and mail a copy of the NOD to the delinquent owner. I advise mailing the copy certified mail as well.

-- Now wait for 90 days after the recording of the NOD or the mailing of a copy of the NOD to the owner, whichever is later.

-- Does the CA handle this nonjudicial foreclosure? I would have to see the agreement with the collection agency to see what the CA does next.

-- Ask the board to ask the PM for a copy of proof the CA sent the certified letter to the owner.

-- Ask the board to ask the PM to ask the CA when the CA will record the NOD and mail a copy of the NOD to the owner.

-- I think you just have to ask the board to ask questions, or maybe appoint you the liaison to the PM and the CA on this matter. And to be blunt because I can only type so fast: Don't be bugging these folks all the time. If the board approves, ask your questions once. Wait for an answer.

SheliaH (Indiana)
Posts: 6,964
Posted:
Why are you trying to do this without an attorney? A good one will walk you through the process, so you'll know the options you have if one step doesn't work out.

I understand you may want to save money and as you get underway, you'll better understand why some things happen - or not, so you'll know what to be mindful of next time. But fir now you need someone well versed in HOA foreclosures so you don't skip a step.

Melissa's information is a good start, but you don't know yet if this person might go chapter 7 or 13 bankruptcy, if he oe she doesn't have a tax license on the house, what the mortgage company will or won't fo, etc. And you already know from the previous board performance in the foreclosure they tried that this inst a simple or easy process. You owe it to your fellow homeowners to at least try and put a method to the madness.

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
LetA (Nevada)
Posts: 2,679
Posted:
Quote:
Posted By MarkM19 on 10/14/2022 3:40 PM
LetA,
Sorry for asking a question that I should know. Were you elected to the board in the last election? If you are on the board, you have every right to challenge the PM. The HOA and board paid the service charge for the Certified Mail if that was how it was done. I think it is your job to question things and the process. It is how you will grow as a board member.


Yes Secretary for 2 years now President
LetA (Nevada)
Posts: 2,679
Posted:
So It looks like we are going to get screwed yet again. Nothing is going to happen for at-least 90 days or more. I suggested in the interim we file another lien against the property
just to secure out place in line so if someone don't do a title search and find that there'e an HOA and money is owed like the last time. ugh

SO. How many liens can an HOA fine against an owner? Said property from public records was foreclosed on by the lender over a year ago. The lender sent the HOA 9 mos of arrears
the past lien has not been satisfied and neither has the rest of the assessments in arrears. Poking around on public records, the bank foreclosure turned the house into a HUD
home and the owners are still in the home not paying assessments. by all accounts they are deadbeats. they play a cat and mouse game with both the water dept and trash collector
not paying the bill then the water and trash put a lien on the property and then the lien is paid. this goes on every 8-10 months leaving us with their heavy debt.

What are our options? I feel that the PMC and PM along with the DCA don't give a S#!T about us.

What I can't fathom is these people should have sold their house over 6 months ago and cashed out in fat city.
I don't get the bank foreclosure turning into a HUD home, can someone explain that.

TimB4 (Tennessee)
Posts: 21,059
Posted:
Yep, in my last Association, we had an owner do the same thing.
Not pay, legal action is taken, they then pay.
Cycle repeats.

It costs them more money in the long run.
The Association, when I did a calculation, lost money (some legal expenses the attorney said we could not be reimbursed for) or barely broke even.

Why the owners play this game is unknown.
However, this is the dance the Association must do.
MelissaP1 (Alabama)
Posts: 13,836
Posted:
First you typically can NOT use fines for the basis of foreclosure. There are some states you can do some "fancy" accounting for a lien for fines. (Applying dues money paid to the fines owed. Long story).

However, I want to address your immediate issues before run of to work. A HUD foreclosure is different than a bank or a HOA foreclosure. These type of foreclosures are what you see those TV commercials or house flipping shows do. A HUD means that this went to the next step and is a TAX foreclosure. This means they did not pay their taxes on the property never the less the mortgage/dues. This is usually the last step with little to no right to redemption. Once it gets to that point usually they have lost many of their owner rights.

You can only foreclose for unpaid dues. Fines are NOT dues. They are "punitive" charges to correct an action. Punitive are not required while dues are.

This will need advice of a lawyer. Maybe able to use a Real Estate or general lawyer for more details. Again your HOA is most likely NOT going to get it's money back or any kind of compensation for anything. Be prepared for that. This is just to get rid of the non-paying owner at this point. Once that happens you may be able to collect from the new owner. It is a "stop the bleeding" situation.

Our person we foreclosed on ended up getting sued after the foreclosure from their tenant. Which they lost another 10K due to those damages. Plus think they stiffed like 4 lawyers? So there are some people who try to use the system till one day that system bites back...

Former HOA President
AugustinD
Posts: 1,027
Posted:
Quote:
Posted By LetA on 10/20/2022 10:02 PM
So It looks like we are going to get screwed yet again. Nothing is going to happen for at-least 90 days or more.
.
.
.
Said property from public records was foreclosed on by the lender over a year ago. The lender sent the HOA 9 mos of arrears. The past lien has not been satisfied and neither has the rest of the assessments in arrears. Poking around on public records, the bank foreclosure turned the house into a HUD
home and the owners are still in the home not paying assessments.
Respectfully, by not retaining a Nevada collections attorney for advice, you all chose to screw yourselves.
CathyA3 (Ohio)
Posts: 6,299
Posted:
Quote:
Posted By MelissaP1 on 10/21/2022 4:39 AM
... snip ...
You can only foreclose for unpaid dues. Fines are NOT dues. They are "punitive" charges to correct an action. Punitive are not required while dues are.

... snip...

One more time: this is not true in all states. Fines and other charges are treated as assessments in my state and become part of what is owed to the HOA/COA.
MelissaP1 (Alabama)
Posts: 13,836
Posted:
I am saying you have to make it look like the charges are not punitive in nature which fines are. You can not foreclose but may be able to lien. That is if you apply the dues money they pay to paying the fine and not dues. This way will look like not paying dues. I do not agree with it but that is how some states can do the lien or foreclosure process. Plus an uneducated HOA may do it anyways.

The HUD in this case is because the bank foreclosed already. The property then has to have the taxes paid. If not, then it becomes a HUD foreclosure. So the people there are basically squatters. They just living on borrowed time till the Tax man calls...

Former HOA President
KellyM3 (North Carolina)
Posts: 2,239
Posted:
Quote:
Posted By LetA on 10/14/2022 11:53 AM
So the BOD decides to foreclose, now what? Please walk me through the process. The Board President signs off on the ATP, Now what? Who is supposed to file the paperwork.
Is the intent to foreclose filed with the County Recorder before or after the auction?

The only step for the HOA board is to call and hire an experienced attorney to handle the filings and proceedings. The board should be only informed and directed is issue votes as required by state law and requested by the attorney.

That ensures your board doesn't make a judicial mistake that re-starts the process and that the foreclosed owner has a professional party with which to consult on the account, if that's still an option.

CathyA3 (Ohio)
Posts: 6,299
Posted:
Quote:
Posted By MelissaP1 on 10/21/2022 6:47 AM
I am saying you have to make it look like the charges are not punitive in nature which fines are. You can not foreclose but may be able to lien. That is if you apply the dues money they pay to paying the fine and not dues. This way will look like not paying dues. I do not agree with it but that is how some states can do the lien or foreclosure process. Plus an uneducated HOA may do it anyways.

... snip ....

Yet again: not all states. Why is this so hard?

I swear this needs to be a hash tag or something... #NotAllStates

CathyA3 (Ohio)
Posts: 6,299
Posted:
Quote:
Posted By CathyA3 on 10/21/2022 7:11 AM
Posted By MelissaP1 on 10/21/2022 6:47 AM
I am saying you have to make it look like the charges are not punitive in nature which fines are. You can not foreclose but may be able to lien. That is if you apply the dues money they pay to paying the fine and not dues. This way will look like not paying dues. I do not agree with it but that is how some states can do the lien or foreclosure process. Plus an uneducated HOA may do it anyways.

... snip ....


Yet again: not all states. Why is this so hard?

I swear this needs to be a hash tag or something... #NotAllStates


I forgot the most important part.

Quote: "I am saying you have to make it look like the charges are not punitive in nature which fines are."

Boards should not attempt to disguise the nature of a charge in order to make it look like something it's not unless they want the foreclosure to get tossed and they want to be on the receiving end of some very uncomfortable discussions with some very humorless people.

OMG.
AugustinD
Posts: 1,027
Posted:
Quote:
Posted By MelissaP1 on 10/21/2022 6:47 AM
That is if you apply the dues money they pay to paying the fine and not dues.
But I believe this is only if the covenants allow this prioritization of owner payments. Some covenants in some states do.

In Nevada foreclosure for fines appears not to be allowed.

The OP has made clear the HOA/COA wishes to foreclose for nonpayment of the regular assessment.
TimB4 (Tennessee)
Posts: 21,059
Posted:
Quote:
Posted By CathyA3 on 10/21/2022 6:38 AM
Posted By MelissaP1 on 10/21/2022 4:39 AM
... snip ...
You can only foreclose for unpaid dues. Fines are NOT dues. They are "punitive" charges to correct an action. Punitive are not required while dues are.

... snip...


One more time: this is not true in all states. Fines and other charges are treated as assessments in my state and become part of what is owed to the HOA/COA.

Completely agree with Cathy.

In fact, in the past I have posted Virginia statutes, when Melissa previously made such a statement, which specifically shows that fines and late charges are treated as assessments. Here it is again:

§ 55.1-1819. Adoption and enforcement of rules. [emphasis added]:

D. The amount of any charges so assessed shall not be limited to the expense or damage to the association caused by the violation, but shall not exceed $50 for a single offense or $10 per day for any offense of a continuing nature, and shall be treated as an assessment against the member's lot for the purposes of § 55.1-1833. However, the total charges for any offense of a continuing nature shall not be assessed for a period exceeding 90 days.

Note: § 55.1-1833 addresses liens for assessments.
MelissaP1 (Alabama)
Posts: 13,836
Posted:
I did not include not in all states because was not talking about all states. I was talking in general terms. Meaning those states that do the practice of foreclosure for fines this is how that may be done. Applying dues to fines etc... That is why you write on the check to be applied to dues. That will provide you proof in court if necessary.

I never said I agreed to this practice. I disagree with it strongly. However, this is what some HOA do to get away with it

Former HOA President
KerryL1 (California)
Posts: 14,550
Posted:
Minore pont but Melissa often refers to fines as "punitive," i.e., as punishment. While partly true, they also can act as deterrents to ward off bad behavior, damage to the HOA, etc., etc.

Our HOA, for instance, just approve a rule to raise the fine for rentals less than 30 days to $5,000 (common in our high rise, urban 'hood) to deter owners fro violating that CC&R.
KerryL1 (California)
Posts: 14,550
Posted:
Minor point but Melissa often refers to fines as "punitive," i.e., as punishment. While partly true, they also can act as deterrents to ward off bad behavior, damage to the HOA, etc., etc.

Our HOA, for instance, just approved a rule change to raise the fine for rentals less than 30 days to $5,000 (common in our high rise, urban 'hood) to deter owners from violating that CC&R.
LetA (Nevada)
Posts: 2,679
Posted:
Thank You for the info on the HUD.. So when and if will these people be evicted? Does HUD own the home?

We had a different owner that their renter created such a catastrophe where SWAT raided the house, used other peoples backyards for cover. The board called the owner to a
hearing and the owner did not show. they were fined $1000.00 for threatening the safety and welfare of the community. NRS 116 allows HOA's to foreclose on properties
that do not pay this particular fine. Our PMC sat on it for 9 months after sending out the initial fine and sending a reminder certified mail. We should of POUNCED on it and foreclosed.
But here we are still stuck with a criminal renter and GOOD hard working owners around this house selling because they don't want to put up with the renters B$
WE continue to fine for the same things that constantly re-occur. Our PMC then reached out to the owner who then paid the one grand fine.

LetA (Nevada)
Posts: 2,679
Posted:
Quote:
Posted By AugustinD on 10/21/2022 6:20 AM
Posted By LetA on 10/20/2022 10:02 PM
So It looks like we are going to get screwed yet again. Nothing is going to happen for at-least 90 days or more.
.
.
.
Said property from public records was foreclosed on by the lender over a year ago. The lender sent the HOA 9 mos of arrears. The past lien has not been satisfied and neither has the rest of the assessments in arrears. Poking around on public records, the bank foreclosure turned the house into a HUD
home and the owners are still in the home not paying assessments.
Respectfully, by not retaining a Nevada collections attorney for advice, you all chose to screw yourselves.

Apparently the PMC's chosen vendor is a HOA type collection agency. Go figure.

I don't get it. HOA's did get a bad rapp for their forecloses as legitimate as they were. These HOA's were filing foreclosure docs first thing in the morning after the final due date.
Why this collection agency is just sitting there is beyond me.
JohnT38 (South Carolina)
Posts: 1,631
Posted:
Quote:
Posted By MelissaP1 on 10/21/2022 10:19 AM
I did not include not in all states because was not talking about all states. I was talking in general terms. Meaning those states that do the practice of foreclosure for fines this is how that may be done. Applying dues to fines etc... That is why you write on the check to be applied to dues. That will provide you proof in court if necessary.

I never said I agreed to this practice. I disagree with it strongly. However, this is what some HOA do to get away with it

Here is what you said:

"You can only foreclose for unpaid dues. Fines are NOT dues."

Where does this statement tell the reader that it is state specific? People often need to correct you because your lack of knowledge is going to mislead someone if you are not corrected. Ideally there should be a disclaimer below each of your posts warning the reader of your history of incorrect information.
AugustinD
Posts: 1,027
Posted:
Quote:
Posted By LetA on 10/21/2022 11:50 AM
Posted By AugustinD on 10/21/2022 6:20 AM
Posted By LetA on 10/20/2022 10:02 PM
So It looks like we are going to get screwed yet again. Nothing is going to happen for at-least 90 days or more.
.
.
.
Said property from public records was foreclosed on by the lender over a year ago. The lender sent the HOA 9 mos of arrears. The past lien has not been satisfied and neither has the rest of the assessments in arrears. Poking around on public records, the bank foreclosure turned the house into a HUD
home and the owners are still in the home not paying assessments.
Respectfully, by not retaining a Nevada collections attorney for advice, you all chose to screw yourselves.


Apparently the PMC's chosen vendor is a HOA type collection agency. Go figure.
Collection agencies do not have the knowledge, skill set, or responsibilities that a collections attorney has.

I think it's likely a collections attorney would have determined this property was in HUD foreclosure and advised your board thusly of how this means things might proceed.

Quote:
Posted By LetA on 10/21/2022 11:50 AM
I don't get it. HOA's did get a bad rapp for their forecloses as legitimate as they were. These HOA's were filing foreclosure docs first thing in the morning after the final due date.
Why this collection agency is just sitting there is beyond me.
Checking on whether a home is already in HUD foreclosure is likely not the job of the collections agency.

Hopefully the collections agency gets nothing unless it produces something. Then perhaps this saga will be an inexpensive lesson in collections.
LetA (Nevada)
Posts: 2,679
Posted:
I can't speak for this collection agency Augustine, but there is a medical debt collection agency here in town that is run by an attorney that knows every trick in the books
that credit repair companies use against your average debt collection agency. I only hope this HOA geared DCA employs the same power and knowledge.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Part of our HOA Attorney's practice is a debt collection department and one cudgel they have is they are a Credit Bureau Reporting Agent. They also have a lien/for closure department so full service for an HOA.

I once asked them about crediting dues paid first to fines owned. Their reply was there is nothing in SC Law that forbids it but they would not care to argue such a practice in front of a judge.

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