More than one lien

Started by LetA • 9 replies • 336 views

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LetA (Nevada)
Posts: 2,679

Posted:

Can an HOA place more than one lien on a property? This cat and mouse game deadbeats play milking the system
has got to be draining on an HOA. Even though HOA's do budget for bad debt, it should never be an option for an
HOA board to walk away leaving money on the table and not collecting it. To me that is a violation of the Boards
fiduciary duty.
Can an HOA file more than one lien on a property? So it looks like we are screwed yet again. Sitting on the ATP authorization to publish and not filing
with the county recorders office has lead to another storage. So the debtor pays a little bit to call off the hounds. The clock starts all over again.
Why not just cut our losses and file a lien for the amount owed against the homeowner and then when they rack up another debt, lien them again.
This back n forth with the mortgage lender paying nine months in arrears does not cover the missing assessments that were not paid along
with the collection fees etc. I feel it would be much easier to keep placing liens on the property, so when the property does sell, the HOA wii be
made whole.

TimB4 (Tennessee)
Posts: 21,059

Posted:

Instead of a lien, I would go for a judgement from the court.
It will cost more to get, but then (expecting they win) the Association can go after bank accounts, tax refunds, seize vehicles, etc. to pay the debt off.
This would keep the mortgage company out of it.

TimB4 (Tennessee)
Posts: 21,059

Posted:

After some research, it appears that the State of Nevada has a lot of laws that protect the debtor and greatly limits what can be seized to satisfy a judgement.
For more info see: Property Exempt from Execution

You may need to consult an attorney to see what other options are available to you.

LetA (Nevada)
Posts: 2,679

Posted:

The next Nevada legislative session begins Feb, 2023 and Senator Pat Spearman is at it again. He will be bringing a bill to the assembly that would make
HOA foreclosures illegal in Nevada. Here is what he tried to do the last legislative session. What if everyone stopped paying!!

https://www.reviewjournal.com/homes/homes-columns/barbara-holland/proposed-bill-could-cause-financial-crisis-for-hoas-2325981/

LetA (Nevada)
Posts: 2,679

Posted:

Quote:

Posted By TimB4 on 12/06/2022 11:47 AM
Instead of a lien, I would go for a judgement from the court.
It will cost more to get, but then (expecting they win) the Association can go after bank accounts, tax refunds, seize vehicles, etc. to pay the debt off.
This would keep the mortgage company out of it.

Then you have to keep renewing the judgment. A lien stays on the deed until the lien is paid and then released.

LetA (Nevada)
Posts: 2,679

Posted:

https://www.leg.state.nv.us/App/NELIS/REL/80th2019/ExhibitDocument/OpenExhibitDocument?exhibitId=40488&fileDownloadName=0410ab369_JauS_Presentation.pdf

I found this powerpoint online. The only problem nobody can answer is when a board meets in executive session to authorize the foreclosure i.e. ATP authorization to publish.
What day number is is on the clock? The party has already defaulted, why can't the HOA get their rightful place in line and file the foreclosure with the county recorder?

By the time the mortgage lender is notified the the HOA intends to foreclose, 12 months of delinquencies has passed when the mortgage lender pays the 9 months in
arrears. There still is the 3 months still not paid, and the debt snowball keeps mounting. another 18 months go by with no payments on current assessments, and possibly
the debtor pays a paltry sum to the collection agency. There has to be a time and place to say enough, 300 plus homeowners should not have to bear the burden on one or more
deadbeats. I never was a fan of an HOA foreclosing on a HOA debt of .00001% of the homes value, that is why I am more in favor of placing liens on the property, the HOA
will collect some day.

MelissaP1 (Alabama)
Posts: 13,836

Posted:

Why not foreclose on the lien you have? That would be the next step. It stops the bleeding not a profit. It is not expensive to file to foreclose. Will need a lawyer.

Former HOA President

LetA (Nevada)
Posts: 2,679

Posted:

Quote:

Posted By MelissaP1 on 12/06/2022 7:55 PM
Why not foreclose on the lien you have? That would be the next step. It stops the bleeding not a profit. It is not expensive to file to foreclose. Will need a lawyer.

Because all the deadbeat has to do is pay one dollar and the whole process comes to a grinding halt. Nobody will give me a straight answer as to why when we get to the point where we have the right and the duty to foreclose, why we just sit
on that paperwork and why isn't it being filed with the county recorder!

MelissaP1 (Alabama)
Posts: 13,836

Posted:

Is that not the point? You want them to pay what they owe? That is why you lien. You foreclose to get rid of the person who refused to pay anything.

Former HOA President

TimB4 (Tennessee)
Posts: 21,059

Posted:

Quote:

Posted By LetA on 12/07/2022 8:25 AM

Nobody will give me a straight answer as to why when we get to the point where we have the right and the duty to foreclose, why we just sit
on that paperwork and why isn't it being filed with the county recorder!

Board wise, they likely don't want to toss a neighbor, perhaps friend, out of their house (or at least be the one known for it).

Legal wise, you need to ask the Associations attorney.

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