Panel mulling cap on HOA collections

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LAS VEGAS (AP) - A Nevada state commission is considering capping the amount that collection companies can charge owners of foreclosed-upon homes for unpaid association fees.

The seven-member Commission For Common-Interest Communities and Condominium Hotels held a hearing Wednesday in Las Vegas before calling for a proposal to cap amounts at $1,950 per homeowner association.

Panel members were told that collection companies have been charging up to $8,000.

The issue is part of a battle between investors buying foreclosed homes and collection agencies for homeowners associations trying to collect past-due assessments.

Earlier this year, investment groups filed a class-action lawsuit claiming hundreds of homeowners associations and collection agencies overcharged them for fines, interest and collection costs that accumulated while homes sat vacant during foreclosure proceedings.

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