Can I get foreclosed on by my HOA?

90 percent of residential properties in Las Vegas are under the management of an Homeowners Association, commonly known as an HOA. While the HOA has its benefits for homeowners, they can also become a huge burden. Some homeowners are unaware that their property may be foreclosed on by their HOA for unpaid assessments. Nevada Revised Statutes NRS 116.31162 provides what is commonly known as super-priority to HOA liens. The HOA’s forclosure can supersede that of the first lien holder on the mortgage (usually a bank). This means that your property can be taken and sold at a fraction of the value. That’s why it is very important for homeowners to be aware of their options and rights. HOAs are ran by a management that charges a fee for maintaining the community.

Things To Know About HOA Foreclosure

1. If you default on paying your monthly HOA assessment, the HOA association has a right to begin the process to begin the foreclosure proceedings. This is regardless if you are current on your mortgage payments or not. Nevada is one of about 20 states that use an HOA Super Lien law.

2. HOA has to file and mail a copy of the proper documents within allotted timeframe. These documents include the following:
-Notice of Delinquent Assessment
-Notice of Default – Filed not less than 30 days of filing the Notice of Delinquent Assessment.

3. You have several available options to catch up on past due HOA assessment fees.
– You may payoff the delinquent amount and all late fees in full. This is, of course, the quickest way insure no further action is taken.
– Although unlikely, you may attempt to negotiate with the HOA to accept a lesser amount than what’s owed.
– The HOA may allow for you to enter into a payment plan. The balance will usually have to be paid in full within a set timeframe.

4. Chapter 7 Bankruptcy is an option that will temporarily stay the foreclosure process as soon as the papers are filed. This prohibits the HOA from foreclosing during the bankruptcy process. However, the HOA may still submit a request to the bankruptcy court to allow the HOA to continue with the foreclosure process. (Crystal, provide more details in your own words for Chp 7 here regarding keeping the home or leaving)

5. Chapter 13 Bankruptcy will treat past due HOA assessments as secured claims. This means that if your property has equity at the time of the chapter 13 filing, your repayment plan must allow for payment to the HOA. If your property is worth less than the amount of the mortgage balance at the time of the chapter 13 filing, then the HOA lien can be stripped. However, if you continue to occupy the home, then all future payments are due.

When to get attorney help for HOA foreclosure.

The Las Vegas laws governing HOA foreclosures can be complicated.  If you are facing foreclosure by a Las Vegas HOA, you should contact attorney Crystal Eller today for a consultation right away. Waiting to get help can allow for the the real possibility of losing you home to foreclosure.

HOA Foreclosure Help

You bought a house at an HOA foreclosure sale! What do you do next? YOU’RE NOT finished yet. Laws and policies are complicated and can be confusing. I have the experience, knowledge and skills needed to achieve the best results.

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