All banks have to do is pay their HOA fees like the rest of us

Today, I’d like to straighten a few things out about this column. I’ve heard that some people are saying I pay for this column. I do not pay for this column. The Las Vegas Review-Journal does not pay me for this column. I’ve been the homeowners association “Dear Abby” for 18 years. In that time I’ve researched a lot of answers for a lot of homeowers, many who have told me they take my column to their HOA board meetings. I believe the more accurate information that gets out there about community management the better it is for all of us. Keep those letters coming. and I will do my best to get you the answers.

..........................

Enough with this chicken-little and the sky-is-falling hysteria over the decision by the Nevada Supreme Court extinguishing the lender’s loan for failure to pay the nine-month superlien law!

The banks will continue to make loans at competitive interest rates for homeowners. Nevada is not the only state where similar decisions or restrictions have been made by other state Supreme Court justices.

Again, here are the facts: First, the nine-month superlien law has always been on the books. All the banks have to do is to pay the homeowner associations. The banks are sent two notices, one of default and one of sale. Second, for all new bank loans and all refinanced loans, the banks have the authority under Nevada Revised Statutes 116 to create an impound account, similar to the ones that exist for the payment of the homeowner’s property taxes and insurance. When a homeowner pays his or her monthly mortgage payments, the association dues will be included. The banks would quickly know if the homeowner is delinquent in association payments, as well as mortgage payments.

Third, no title company will provide a clean title on any foreclosed homes that are owned by the associations or by the investors who purchased the homes during the associations’ auctions. The title companies are going to require quiet titles before insuring a home to be resold from the foreclosure deed. This will take time and money. To obtain quiet title will require the owner of the home to initiate action in District Court, at which time, you know the banks will fight the action, No bank is just going to lay down and let its loan be extinguished without a fight!

Many associations are informing their collection companies to notify the lenders again before taking any action.

The benefit to the associations and to the majority of the individual homeowners who pay their assessments each month is that the associations will not have to struggle so much in meeting their financial obligations. When the banks do not take action at the time of the nine-month period, i.e. paying the superlien, the associations are then forced to continue the foreclosure actions, which take more time, during which no funds are being received to pay for the associations’ obligations. Before the Supreme Court decision, many associations could not even finish the foreclosure process of publishing the sales of these delinquent homes because there was no guarantee that the homes would be purchased at the foreclosure auctions.

We are waiting to hear the Nevada Supreme Court’s decision as to whether late, legal and collection costs are included with the nine-month superlien payment. Hopefully, the courts will support the associations’ position that these costs are included in the superior lien, which will be a major benefit to the homeowners, whose dollars support their communities.

Barbara Holland, certified property manager, broker and supervisory certified association manager, is president and owner of H&L Realty and Management Co. Questions may be sent to the Association Q&A, P.O. Box 7440, Las Vegas, NV 89125. Fax is 702-385-3759, email is support@hlrealty.com.