A number of readers have asked me to comment upon vacant homes owned by lenders.
All homeowners associations have experienced problems with unkempt, abandoned and damaged foreclosed homes. We all have experienced lenders failing to foreclose on delinquent properties in a timely manner. I have had many readers ask about some of the options, besides finding lenders, when they are the unit owners.
You can file a complaint with the Consumer Financial Protection Bureau at Caioline.org/Advocacy/MortgageMatters/CFPBcomplaint/Pages/default.aspx. Be specific and make sure you have the correct information as to the address, parcel number, name of the mortgage company, etc.
Readers also are reminded that Nevada Revised Statutes 116.310312 allows an association to be proactive in maintaining the exterior of the home or removing a public nuisance on the exterior of the home. As with all violations, the association must provide the bank with notice and an opportunity for a hearing. This law allows the association to enter the grounds of the home in order to abate a public nuisance or maintain the exterior. It is, by law, not considered trespassing.
In addition, the cost of any maintenance or abatement can be charged back to the bank in order for the association to be reimbursed. A lien could be placed on the home for nonpayment and the association could foreclose on this lien. In fact, the law creates a superior lien which ensures the association would be reimbursed for these expenses.
In some cases, an association would have difficulty resolving some maintenance issues, especially landscape. It would be relatively easy for the association to remove weeds, trim plants and remove trees and debris. It might not be possible to properly maintain the front yard landscaping if there is no power or water.
Q: Nice article on homeowners associations prohibiting renting. I live in an association where I purchased a home in 2005 and have been renting my house to supplement my income when I’m not in town. It’s mostly short term, but have now changed to a minimum of a month. Can you tell me if my local HOA can prevent me from renting my house on a monthly basis?
A: Your association could prevent you from renting out your house on a monthly basis if your community rules state that the minimum term of a lease or rental agreement must be more than one month. There are covenants that state that the lease or rental agreement cannot be less than six months.
Barbara Holland is a certified property manager, broker and supervisory certified association manager. Questions may be sent to firstname.lastname@example.org.