If you own a home in Las Vegas, you are aware of the monthly HOA fees, known as common assessment fees, that range from as little as $10.00 to over $1,000.00. However, what you probably don't know is that if you become delinquent in your HOA common assessments, your HOA can sell your home within a matter of months, even if you are current on your mortgage. For more information, click this link.
What's more concerning is that the foreclosure process is not always readily apparent. Suppose you have your HOA payments set up on autopay through your credit card company. But at some point, the credit card company issues you a new credit card number, and you forget to update it with your HOA. Consequently, you are unaware that the HOA is not receiving payment. The HOA is only required to send you the following documents via regular mail:
Notice of Delinquent Assessment Lien: This document informs the homeowner that they are delinquent on their HOA payments and that the HOA will record a lien on the homeowner's property if not satisfied.
Notice of Default and Election to Sell: This document is sent to the homeowner and recorded against the property. It represents the lien that the HOA can ultimately foreclose upon.
Ninety days after the Notice of Default is recorded and sent, the HOA will send and record a Notice of Sale. This document informs the homeowner that their property will be sold at auction on a specific date and time.
The HOA is not required to provide any additional notice to the homeowner. What's even more troubling is that the above-referenced notices are often sent in envelopes that do not effectively communicate the serious consequences if the property goes up for sale. The notices can easily be mistaken for junk mail and are often disregarded by homeowners.
As a homeowner in a Nevada HOA, it is imperative that you regularly check with the HOA to ensure there are no payment issues. You can also use this link to the Clark County Recorder's Office to check your property records. To access the county records, you will need your home's APN number, which can be found on Zillow.com (simply insert your address in the Zillow website). If a Notice of Default or a Notice of Sale is recorded against your property, it will appear in the county records.
Finally, unfortunately, most victims of Nevada's greatly unfair and unjust HOA foreclosure laws are elderly or mentally incompetent individuals who lack the mental capacity to understand the foreclosure notices. If you have loved ones who are elderly or suffer from a mental illness, we highly recommend checking their property records to ensure they don't fall victim to the HOA foreclosure laws.
If you or someone you know is facing HOA foreclosure, it is imperative that you contact an attorney immediately. At Dragon Law Group, we can help!