Foreclosure in Las Vegas>Question Details

Michael Parks, Real Estate Pro in 89144

Has anyone encountered an HOA that has foreclosed on a property with over $220,000 in outstanding mortgage debt (over a $3000 past due HOA bill)?

Asked by Michael Parks, 89144 Fri Jul 20, 2012

I have a homeowner that never received any notices and her home was sold at auction today. However Not by the bank, but by the HOA. She called the bank and they had no idea or record of any sale or auction, but it appears to have sold from what I can tell through my tracking service. She received a 5 day pay or quit notice today (1st notice she ever received). She's a single mother with young children living in the home so I want to make sure I provide her with the most accurate options available. Any reliable input on this matter would be greatly appreciated.

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Michael:

As i work for a law firm as well as being a licensed agent, we defend these defaults and foreclosure sales daily. Here is Nevada there are very specific laws that all of the foreclosing entities must follow. typically here in Clark County there would be a Demand followed by a notice of default and then proceeding on to foreclosure. I would strongly encourage the homeowner to contact a licensed attorney who practices Real Estate Law. As I am not an Attorney, this is not to be intended as legal advise.

Let me know if you have more questions.

Craig Tiffee
Real Estate Masters, LLC.
(702) 785-8240
craigsells702@gmail.com
http://www.craigsells.com
0 votes Thank Flag Link Thu Mar 5, 2015
Hi Michael, it's been a while, but do you happen to have any info on what happened in this case? Or what HOA company was it?

The exact same thing happened to me, and the whole thing reeked of shadiness. We went to court and they magically had receipts to certified letters I never received. All of them were returned, but they held up in court and I had to vacate the house. So I basically lived in our house and was current on my loan for 4 months, and someone else already owned it.

What made everything worse was that our lender didn't put a lien on the house when they bought the loan from MetLife, so not even they knew any of this happened.

Long story short, the other lawyers are holding on to the remainder of the auction money because they claim they don't know who it should go to, and I'm still stuck with 190k loan. Neither our lawyer or lender is being helpful. It's been almost a year and my credit is being ruined as we speak.
0 votes Thank Flag Link Wed Mar 4, 2015
Hey Michael,

I would check out the Clark County Recorders site. Which will tell you what notices and liens have been filed and recorded against the property. This way you can see if the notices were filed correctly. Which may be able to give you some leverage if they weren't filed.

Just an FYI: there is no redemption period in Clark County, Nevada.
Unless we are talking about a Judicial Foreclosure or Tax Liens.

Buying the HOA lien does not wipe out the mortgages. The investors are looking to get CASH from renting out the property, or getting paid off once the property sells. HOA liens in the State of Nevada are a super priority lien.

Either call the investor yourself on the clients behalf, or have her lawyer call to negotiate or work something out with the investor.

I have heard that some investors are getting burned by buying these HOA liens. That when they try to get financing on the property there not able to. Don't know how accurate this is.

Best of Luck,

Chris Harrison
Barrett & Co., Inc.
702.592.9510 ph
Chris.Harrison@msn.com
0 votes Thank Flag Link Thu Nov 15, 2012
They are unable to get financing on these properties, or sell them, because they do not have clear title. The bank still has an interest in the property. Eventually, the bank will foreclose on the property or sell it at a bank auction, at which time, the original investor is OUT.
Flag Thu Oct 24, 2013
What did she think would happen? $3k in HOA, at estimated $150/mo is more than 1.5 years... was she paying her mortgage but not her HOA?

Over the last year banks have not been foreclosing often or even sending notices of defaults... but guess what? MERS won the recent suit, and after Holidays expect to get foreclosed on if you haven't been paying your mortgage.
0 votes Thank Flag Link Wed Nov 7, 2012
Yes they can and do foreclose regardless of the other lien holders. In most cases, the hoa doesn't want your home, but there will be a line of investors ready to bid in the auction. These days it's typical for the hoa lien to be $3000-$5000 and have it bid up to $10k+ by investors and sold at auction even if the other liens greatly exceed the value of the property. The foreclosure laws still apply and notice of default and notice of trustee sale should have been recorded and posted prior to the foreclosure.
0 votes Thank Flag Link Thu Oct 11, 2012
This is very possible....much more so in this state.
0 votes Thank Flag Link Thu Oct 11, 2012
Michael,

The Investor who purchased the home must evict her in the same manner as a regular foreclosure. If she is the previous owner this means formal eviction. (Takes about 6 weeks) She should answer the 5 day at the court by filing an answer & the investor will have to serve a 3 day followed by a long form unlawful detainer suit. She would be best served by agreeing to rent the property from the Investor until she can move on her own terms.
0 votes Thank Flag Link Wed Jul 25, 2012
Just in case anyone need to fill out an unlawful detainer summons form, I found a blank form in this link http://pdf.ac/6LDDR. This site PDFfiller also has several related forms that you might find useful.
Flag Sun Apr 5, 2015
Thanks Joan. I'll contact him on Monday to see if there is any recourse. The homeowner did received a late payment notice but nothing regarding a foreclosure sale, and the mortgage company was not aware of the sale either. They are generally notified at the same time as the homeowner if there is an upcoming foreclosure sale so that they can protect their position against the property. It appears the HOA auctioned a mortgaged property for $3000, meanwhile the bank has over $220,000 in outstanding mortgages. So it appears that an investor bought the home at auction for $3,000 without settling the superior liens. I'm imaging that the investor who bought the mortgage plans on renting the home until the mortgage company forecloses on him for the outstanding mortgages. It seems unethical but I suppose it's technically legal. There are plenty of ways to make money in real estate but putting a homeowner on the street while you rent their home until the bank forecloses doesn't seem like a very ethical investment option. I look forward to additional info on the topic and if anyone knows of any steps to extend the owners stay beyond the 5 days they were given. Thanks again for the feedback.
0 votes Thank Flag Link Sat Jul 21, 2012
According to Later, it is legal but it seems more like a scam to me when you really start to think about the possibilities...
Flag Sat Jul 21, 2012
Nevada law gives HOA a lot clout in getting paid, including getting a lien by filing for foreclosure.

David Cooper Investor and Licensed Buyers Agent 702-499-7037
0 votes Thank Flag Link Sat Jul 21, 2012
I have seen this happen one time locally in my area. But, I'm sure the notices were provided as the HOA probably has a complete file on the case.

If the homeowner wants to save the home, I would advise to seek immediate legal counsel. There are right of redemption laws related to HOA foreclosures in which the previous owner can pay all delinquency monies and fees within a certain timeframe and regain their home. Time is essential in this regard.

In the case I saw locally, the HOA wanted to sell the home after the right of redemption period , but the home was already undergoing foreclosure by the bank who had no idea the HOA was the owner and it was quite a mess. Anyway, good luck.


Darrell D. Drouillard
Home Team of America
16719 Huebner Rd., Bldg 4
San Antonio, Texas 78248
210-373-6160
210-881-6760 (Fax)

http://www.dddrealtor.com

'Serving all Your Real Estate Needs'
0 votes Thank Flag Link Sat Jul 21, 2012
Michael, there definitely should have been notices - did the homeowners ignore them? Call Michael Later, Esq. 702 685-4400. He just recently had a GLVAR class on this.
0 votes Thank Flag Link Sat Jul 21, 2012
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