Ask a Lawyer: Can my HOA foreclose?

Sunday, June 28, 2015|2 a.m.

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By Lawyer Xenophon Peters, Partner, Peters and Associates, LLP

Question: Last week, I got a letter stating my HOA was foreclosing on my house due to the fact that I owe them $2,000 that’s past due. Can they do that? I’m current on my mortgage and do not think I owe them money!

Response: Yes. In Nevada, a house owners association has the right to foreclose on a house regardless of whether you’re existing on your mortgage, even if you contest the amount you owe. In truth, your letter most likely checks out, “Warning! If you fail to pay the quantity defined in this notification, you could lose your home, even if the quantity is in disagreement.” (That’s needed by law).

HOA repossession has actually been in the news a lot over the previous few years, most just recently when Gov. Brian Sandoval signed into law Senate Costs 306, which includes a number of new policies governing HOA foreclosure. Regrettably for the reader who asked today’s question, the bill does not take effect till Oct. 1.

HOA foreclosure is no joking matter. Once the procedure has actually started, HOAs tend to foreclose quickly, leaving many (former) house owners upset and puzzled when they’re evicted by brand-new owners. Adding to the anguish, since this writing, a lot of HOA repossessions are long-term, implying there’s no right of redemption. *

Hope is not lost, though. It’s usually possible to work out with your HOA to stop the sale and work out a payment strategy– occasionally for less than what you owe. The fact is, most HOAs don’t want to foreclose on residents, they just want to earn money. (They have to do with as strapped for cash as the rest people). If you communicate with your HOA board, you normally can work something out.

If your HOA board won’t deal with you, there may be other choices to offer to stop or postpone an HOA foreclosure, consisting of bankruptcy and filing a claim. Before decreasing those courses, however, I encourage you to aim to manage the situation outside of the court system.

* When Senate Bill 306 goes into result in October, homeowners will have 60 days after the date of repossession to pay the auction-sales rate plus other expenses as noted in NRS 116.31166 to obtain their home back.

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Kindly note: The information in this column is intended for basic functions just and is not to be considered legal or expert suggestions of any kind. You need to consult that is specific to your problem prior to taking or refraining from any action and must not count on the details in this column.

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