Wednesday, June 27, 2012

More Suits Filed Targeting HOAs That Allegedly Squeezed F'closure Sale Investors w/ Inflated Lien Shakedowns For Unpaid Assessments When Taking Title

In Clark County, Nevada, Vegas Inc. reports:

  • Four more Southern Nevada homeowners associations have been sued over allegations they’ve been requiring purchasers of foreclosed homes to pay off inflated liens.

  • In one case filed this week in Clark County District Court, Metroplex Realty LLC sued the Black Hawk Homeowners Association in North Las Vegas, Shadow Wood Homeowners Association Inc. in Las Vegas and Highgate Condominium Property Owners Association in Las Vegas. In another suit filed in the same court May 29, Elsinore LLC sued the Springs at Centennial Ranch Homeowners Association.

  • The plaintiffs in both suits are represented by Las Vegas attorneys James Adams and Puoy Premsrirut. Those attorneys regularly sue HOAs over what they call unauthorized collection costs and other charges included in liens that HOAs file against properties whose owners are delinquent on assessments and that ultimately are foreclosed on.

  • State law says HOAs can file ''Super Priority Liens'' that are ahead of mortgage liens, meaning the HOA lien amounts have to be paid for the buyer of a foreclosed property to obtain clear title.

  • Adams and Premsrirut insist these Super Priority Liens are limited under state law to six or nine months of assessments, depending on the circumstances. In some cases, Adams and Premsrirut say the liens are also limited by individual HOA CC&Rs (covenants, conditions and restrictions).

  • The HOA and collection industries say the law allows interest and collection costs on top of the caps claimed by Adams and Premsrirut. They say HOA budgets, already depleted by the recession and the flood of foreclosures, would be harmed even more if Adams and Premsrirut and their investor clients have their way.

  • State agencies and Clark County District Court judges have issued conflicting rulings on this issue, and many attorneys expect the Nevada Supreme Court to ultimately decide the dispute.

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