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Old 01-10-2012, 01:29 PM
 
6 posts, read 26,666 times
Reputation: 18

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Quote:
Originally Posted by repru View Post
Always an interesting question but not relevant in this situation.

[mod cut-- discuss topic, not posters]
I was renting the place through a rental agency. At the end of the year, they sent me a tax statement, which I included on my personal income taxes. Every dime I received in rent was reported to the IRS.

[mod cut-- discuss topic, not posters]

Last edited by observer53; 01-29-2012 at 09:15 AM..

 
Old 01-10-2012, 02:00 PM
 
Location: Cedar City, UT
227 posts, read 932,535 times
Reputation: 126
Having been in the title insurance industry for many years, albeit not in Nevada, here is my take on your situation.
When you took out the loan on the property, I'm sure you signed a Promissory Note. This instrument made you PERSONALLY LIABLE for the repayment of the loan. The collateral for the loan is the property and in the event of a default, the property, through legal proceedings becomes the property of the lender. Present title to the property has no effect on the validity of the loan. AFAIK, the only liens that are superior to a mortgage/trust deed are Federal Tax Liens and real estate taxes. While the HOA is the current owner of record, the lien of the trust deed remains valid and enforceable and your PERSONAL LIABILITY. If the security instrument is like most others, there will be a "due on sale" clause that requires payoff of the lender. The foreclosure by the HOA is tantamount to a sale and therefore the loan can be called at any time by the lender and any deficiency can be be brought as an action against you by virtue of the Note and the lender can recoup its loan amount. (Not sure about deficiency judgements in Nevada).
So to answer your question. Yes, the HOA can foreclose but they risk losing title to the property if the lender chooses to foreclose which is why they are renting the property so they can make up the money that is owed them prior to legal action being initiated by the lender. It's just a matter of time.
 
Old 01-10-2012, 03:27 PM
 
Location: Henderson
681 posts, read 625,940 times
Reputation: 387
Quote:
Originally Posted by NYtoVT View Post
Having been in the title insurance industry for many years, albeit not in Nevada, here is my take on your situation.
When you took out the loan on the property, I'm sure you signed a Promissory Note. This instrument made you PERSONALLY LIABLE for the repayment of the loan. The collateral for the loan is the property and in the event of a default, the property, through legal proceedings becomes the property of the lender. Present title to the property has no effect on the validity of the loan. AFAIK, the only liens that are superior to a mortgage/trust deed are Federal Tax Liens and real estate taxes. While the HOA is the current owner of record, the lien of the trust deed remains valid and enforceable and your PERSONAL LIABILITY. If the security instrument is like most others, there will be a "due on sale" clause that requires payoff of the lender. The foreclosure by the HOA is tantamount to a sale and therefore the loan can be called at any time by the lender and any deficiency can be be brought as an action against you by virtue of the Note and the lender can recoup its loan amount. (Not sure about deficiency judgements in Nevada).
So to answer your question. Yes, the HOA can foreclose but they risk losing title to the property if the lender chooses to foreclose which is why they are renting the property so they can make up the money that is owed them prior to legal action being initiated by the lender. It's just a matter of time.
I agree except for the personal liability part. Very unlikely in Nevada.

Eventually, the bank will get around to foreclosing on OP's condo. They have a long list and they are slowing going down it. The HOA is renting our OP's former condo to make up for the HOA fees he didn't pay. OP's mistake was not paying his HOA fees while he rented out his condo until the bank did foreclose on him.

I don't think that that the OP hasa problem right now so I would suggest that he gets an unlisted telephone number.
 
Old 01-10-2012, 03:43 PM
 
Location: Cedar City, UT
227 posts, read 932,535 times
Reputation: 126
Quote:
Originally Posted by bayview6 View Post
I agree except for the personal liability part. Very unlikely in Nevada.

Eventually, the bank will get around to foreclosing on OP's condo. They have a long list and they are slowing going down it. The HOA is renting our OP's former condo to make up for the HOA fees he didn't pay. OP's mistake was not paying his HOA fees while he rented out his condo until the bank did foreclose on him.

I don't think that that the OP hasa problem right now so I would suggest that he gets an unlisted telephone number.
Thanx for the clarification. Wasn't sure about deficiency judgements in NV.
 
Old 01-10-2012, 03:48 PM
 
160 posts, read 184,204 times
Reputation: 71
Among the nasties and snides the sharks often hide wisdom. So it pays to listen even if they are doing the rude bit.

My belief he needs a lawyer is that I don't know how the one action rule works in NV when the HOA intervenes and takes the property. I too agree that the lender will inevitably take the place from the HOA...only a question of when.

I would be skeptical of a deficiency as well unless the rules change with the change in ownership.. For instance the lender could decline to foreclose for now and go after the mortgagee on a due on sales. Once that is resolved he forecloses.

I am just scared of unusual situations...they may come out the wrong way.
 
Old 01-10-2012, 04:03 PM
 
Location: Henderson
681 posts, read 625,940 times
Reputation: 387
Quote:
Originally Posted by repru View Post
Among the nasties and snides the sharks often hide wisdom. So it pays to listen even if they are doing the rude bit.

My belief he needs a lawyer is that I don't know how the one action rule works in NV when the HOA intervenes and takes the property. I too agree that the lender will inevitably take the place from the HOA...only a question of when.

I would be skeptical of a deficiency as well unless the rules change with the change in ownership.. For instance the lender could decline to foreclose for now and go after the mortgagee on a due on sales. Once that is resolved he forecloses.

I am just scared of unusual situations...they may come out the wrong way.


especially with a 2nd mortgage on the property. Who knows? Maybe the HOA will just give the bank a Deed in Lieu of Foreclosure and the problem will disappear.
 
Old 01-10-2012, 09:12 PM
 
Location: Seattle area
436 posts, read 404,075 times
Reputation: 234
wrench, I suggest a real estate attorney. My hunch is that posts above are correct, that the bank can foreclose on the HOA's new property. I doubt you'd be extra liable due to the HOA involvement but strange things are happening all over so you might want to pay the expert to find out.

I support your actions as a business decision. Rather than you being a deadbeat, you are simply incurring the financial consequences spelled out in your contract and in the law, to which all parties and the voters agreed on beforehand. Not paying debts is perfectly okay for businesses so should be for individuals too. They should have the same consequences is all. The middle class is strengthened when everyone treats their finances like businesses do.
 
Old 01-28-2012, 06:41 PM
 
2 posts, read 3,489 times
Reputation: 11
Default Yes they can!! & they do! & the bank will!

Yes they can foreclose without paying the bank a Dime! & They Do & Will Foreclose & Rent the property Out! & The Bank Will One Day Foreclose The HOA Back Out BUT The HOA being the current Owner will most likely keep the HOA Dues current so that the bank does not have to pay any late fees, Just the transfer fees. It's a practice that actually helps Our Community because it takes a home that You or others in Your position have left for dead, empty & unprotected. They fill them with tenants that can assure that squatters or thieves dont strip the house and kill the neighborhood further.

Such theft is rampant and is still the homeowners responsibility. So it's better this way. HOWEVER The HOA Takes the risk that their sale wipes away their 9 month super priority lien just before the bank forecloses! So the HOA Can get bit by these sales if they don't have a competent Collection company doing the sale. Its not All Roses for the HOA Either way!!
[mod cut]

Last edited by observer53; 01-29-2012 at 09:05 AM.. Reason: off topic
 
Old 01-29-2012, 09:19 AM
 
Location: South Tempe, AZ
14,199 posts, read 17,763,745 times
Reputation: 6382
The OP clearly needs professional legal advice. Thanks to those who have offered advice or construcitive suggestions which the OP can discuss with the appropriate professional.

Closed.
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