NOW WHAT HAPPENS

The Homeowner could ...

Arrange through our office to pay in full, all delinquent assessments, late charges, interest and fees, to resolve their delinquency and bring them back into good standing with the Association.

Contact our office to arrange a contracted payment Plan (Good Faith Agreement) to bring their account current over the next several months.

File for Bankruptcy, at which time we will then file the "Proof of Claim" for the Association and monitor the case at no charge to the Association. Should the Homeowner fail to keep current on their post- petition payments during bankruptcy proceedings, our attorneys will file the appropriate motions with the court to insure payments.

Allow the First Mortgage to foreclose, at which time we will demand from the lender the 6 month Superpriority Lien (NRS 116.3116) amounts on behalf of the Association, OR, make a claim against any excess funds.

Example: 

The Bank’s Foreclosure sale occurs on September 21, 2008, and the bank gets it back or an Investor buys it just slightly over opening bid (amount owed to bank).

The Association can collect dues, late charges, fines and fees going back to March 1, 2008, and may have to write off the balance owed to bad debt.

If the property is sold for more than what is owed to the bank, the extra money is called “Excess Proceeds” and the Association can make a demand against those monies for everything that is owed.

The Homeowner could choose to ignore all proceedings, and the Association’s foreclosure would proceed.