Panel mulling cap on HOA collections
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.