Posts Tagged ‘Nevada’

Superliens and HOA foreclosure in the news

October 16, 2014

A pair of Wall Street Journal bits today– a blog and a paywall-protected article– discuss HOA foreclosures.  An association can, in Idaho and most states, foreclose on its assessment liens.

What is unusual is that the blog actually looks at the rationale behind HOA foreclosures instead of taking the usual populist anti-HOA tone.  In doing so, the blog reports an argument that we have had to make many times in our own office:

“The problem is that [some] lenders aren’t doing what they need to be doing. They’re not fulfilling their obligation. All they need to do is fulfill their obligation in paying the assessments or to exercise their right to foreclosure in a timely manner,” says Ms. Bauman.

Most of this WSJ coverage is about states where HOAs have a “super-lien” that allows an HOA to get its money from foreclosure before the banks even get paid.  We don’t have that here in Idaho, where most CC&Rs explicitly subordinate the HOA’s liens to purchase price mortgages.  However, HOAs in Idaho also face the same banks and the same problems with foreclosure.  An idaho HOA in extreme cases may even see advantages to foreclosing subject to a mortgage, just to help the process move along.

The blog:

http://blogs.wsj.com/developments/2014/10/14/why-homeowners-associations-want-to-foreclose-on-homes/ 

The article:

http://online.wsj.com/articles/foreclosure-dispute-pits-mortgage-lenders-vs-investors-1413321865

PS, Ballard Spahr posted about similar super-liens in Colorado, recently:  http://www.jdsupra.com/legalnews/implications-of-a-homeowner-association-92787/

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Autumn Chase Board Chased Out

October 11, 2012

If you have not been following the brouhaha in Vegas, the state has stepped in and ejected an entire hoa board of directors.  The local coverage is great:

http://www.lvrj.com/news/in-a-first-state-boots-entire-hoa-board-173423441.html

http://www.8newsnow.com/story/19789149/hoa-board-removal-called-historic

In Idaho we have no such state review of board actions.

 

 

Las Vegas’s HOA Scandal: Bringing Out The Best In HOA Crooks

August 10, 2012

I have argued before, and often, that we need more laws in Idaho for homeowner associations and condominiums: Just a few guidelines to keep boards, accountants, and managers on the straight and narrow.  So, when the hokey pokey that is known as the Las Vegas HOA Scandal (it looks better in neon) came along, I thought I’d found a gift that would keep on giving.  Fake elections with straw buyers and counterfeit ballots, millions stolen, suicidal lawyers, all this needed was a some official cover-up, and you’d have a world-class headline.

It made my job easy.  Throw up the latest development, and “jackpot!” Arguments for reform don’t come much easier.

The problem is that Nevada already has HOA legislation.  A lot of it.  If anything, Nevada’s law only drove the sheisters to new levels of creativity.

Here in Idaho, we don’t get big HOA scandal headlines, because our scammers are low-profile and uncreative.  All you have to do to skim a little off the top is write some checks, take some vacations and spend as you go.  If the board is not paying attention, you can get away with it for years.  When you get caught, it is barely news, because who hasn’t heard of a treasurer or manager running off with association funds before?

In the Gem State, you are on your own.  But don’t pack for Idaho yet, potential scammers.  That can cut both ways.  We also love our guns.