Concerned Homeowners Association Members Coalition Forms
Outraged with HOA collection practices and the wide impact on all Nevadans, CHAMP joins the battle to stop this abusive process.
Las Vegas, NV, February 18, 2011 --(PR.com)-- Concerned with the impact of exorbitant collection fees charged to homeowners struggling to pay their HOA dues, the Concerned Homeowners Association Members PAC (CHAMP) today announced the launch of their website, www.champnv.org
The coalition was formed to represent the interests of individuals and entities including HOA board members, minority groups, not-for-profit legal entities, consumer credit counseling services, union members, realtors, and all Nevadans to combat a mostly unregulated and egregious HOA collection process. CHAMP believes unregulated HOA collection practices are in clear violation of federal law and negatively impact consumers in Nevada.
“Many homeowners are struggling to make their mortgage payments and keep their homes, but if they become two months behind on their association dues, they are usually turned over to an HOA collection company that can initiate a foreclosure of their home for being $200 in arrears,” said Anita McFarland, Esq. McFarland’s law firm represents entities including Fannie Mae, Freddie Mac, Bank of America and Chase. “When the homeowner then tries to catch up on their assessments, they will owe many times that much in collection fees, making it virtually impossible for the struggling homeowner to ever see daylight,” she said.
Guidelines for Freddie Mac and Fannie Mae, the country’s largest lenders, clearly state that they will not lend in states that allow HOA collection fees greater than 6 months. Nevada statute currently allows for 9 months of back due fees, but HOA collectors are illegally going around the statutory 9 months and have been able to churn and collect significantly more fees – none of which go back the the HOA.
Once a homeowner’s file is turned over by an HOA board to the HOA collection company, there is no limit on fees they can charge. Notifications can cost the homeowner as much as $350 per letter, adding up to thousands of dollars very quickly.
“Most people are probably aware that Government Sponsored Enterprises like Freddie Mac and Fannie Mae guarantee a huge percentage of the loans for home purchases made here in Nevada,” said McFarland. “With the huge onslaught of foreclosures, the Homeowners Associations are struggling to make ends meet, and our GSEs have had to receive billions of taxpayer dollars in bailout funds to make good on their guarantees. I find it despicable that these collection companies tout themselves as providing a much needed service to the public and the struggling Associations, when in fact the HOA foreclosure process seldom benefits the Association in this economic climate. I encourage association Board Members to reconsider their collection policies, and educate themselves regarding what is best for their communities and their members.”
Nevada’s REALTORs are seeing first-hand the damage out of control HOA collections practices are having on a market struggling to find its way out of the foreclosure crisis. “There is definitely a disconnect in communication between the HOAs, collection companies and homeowners. REALTORs work very closely with homeowners in the hopes of helping them avoid foreclosure with a short sale. When collection companies charge exorbitant amounts in addition to past due HOA fees, it hinders a sale and many times will prevent it from ever having a real chance to close,” said Mark Stark, CEO of Prudential Americana Group. The company is one of Nevada’s oldest and largest real estate firms. “Homeowners are trying to do the right thing in a very tough environment…but this does not mean they simply will let themselves be taken advantage of. Keep in mind this affects the banks negatively as well, if a short sale does not occur then most always a foreclosure is eminent, thus creating more blighted neighborhoods in our community.”
“The collection policies are out of control,” said Frank Hawkins, President of the NAACP Las Vegas branch 1111. Hawkins said he intends to speak to legislative members to “help create a statutory structure that protects all Nevadans, not HOA collection companies.”
“This problem is directly impacting our members and the goods and services they provide,” said Duy Nguyen, executive director and CEO of the Asian Chamber of Commerce. “Without fixing this through solutions recommended by CHAMP, the recovery of our state’s fragile economy will be further delayed.”
Michele Johnson, CEO of Consumer Credit Counseling Service in Clark County, sees another side of the story. “We work with low and moderate income families throughout Nevada looking to purchase homes,” said Johnson. HOA collection fees follow the property and hold a “superpriority” status, meaning they get paid before any other transaction can take place. “When my clients, who are receiving a federal grant, find out that a home has several thousand dollars in past due HOA collection costs on the title and that their loan will only pay for 6 months of back due fees, their dream of home ownership is quickly taken away,” she said. “The only people benefiting from this system are the HOA collectors.”
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The coalition was formed to represent the interests of individuals and entities including HOA board members, minority groups, not-for-profit legal entities, consumer credit counseling services, union members, realtors, and all Nevadans to combat a mostly unregulated and egregious HOA collection process. CHAMP believes unregulated HOA collection practices are in clear violation of federal law and negatively impact consumers in Nevada.
“Many homeowners are struggling to make their mortgage payments and keep their homes, but if they become two months behind on their association dues, they are usually turned over to an HOA collection company that can initiate a foreclosure of their home for being $200 in arrears,” said Anita McFarland, Esq. McFarland’s law firm represents entities including Fannie Mae, Freddie Mac, Bank of America and Chase. “When the homeowner then tries to catch up on their assessments, they will owe many times that much in collection fees, making it virtually impossible for the struggling homeowner to ever see daylight,” she said.
Guidelines for Freddie Mac and Fannie Mae, the country’s largest lenders, clearly state that they will not lend in states that allow HOA collection fees greater than 6 months. Nevada statute currently allows for 9 months of back due fees, but HOA collectors are illegally going around the statutory 9 months and have been able to churn and collect significantly more fees – none of which go back the the HOA.
Once a homeowner’s file is turned over by an HOA board to the HOA collection company, there is no limit on fees they can charge. Notifications can cost the homeowner as much as $350 per letter, adding up to thousands of dollars very quickly.
“Most people are probably aware that Government Sponsored Enterprises like Freddie Mac and Fannie Mae guarantee a huge percentage of the loans for home purchases made here in Nevada,” said McFarland. “With the huge onslaught of foreclosures, the Homeowners Associations are struggling to make ends meet, and our GSEs have had to receive billions of taxpayer dollars in bailout funds to make good on their guarantees. I find it despicable that these collection companies tout themselves as providing a much needed service to the public and the struggling Associations, when in fact the HOA foreclosure process seldom benefits the Association in this economic climate. I encourage association Board Members to reconsider their collection policies, and educate themselves regarding what is best for their communities and their members.”
Nevada’s REALTORs are seeing first-hand the damage out of control HOA collections practices are having on a market struggling to find its way out of the foreclosure crisis. “There is definitely a disconnect in communication between the HOAs, collection companies and homeowners. REALTORs work very closely with homeowners in the hopes of helping them avoid foreclosure with a short sale. When collection companies charge exorbitant amounts in addition to past due HOA fees, it hinders a sale and many times will prevent it from ever having a real chance to close,” said Mark Stark, CEO of Prudential Americana Group. The company is one of Nevada’s oldest and largest real estate firms. “Homeowners are trying to do the right thing in a very tough environment…but this does not mean they simply will let themselves be taken advantage of. Keep in mind this affects the banks negatively as well, if a short sale does not occur then most always a foreclosure is eminent, thus creating more blighted neighborhoods in our community.”
“The collection policies are out of control,” said Frank Hawkins, President of the NAACP Las Vegas branch 1111. Hawkins said he intends to speak to legislative members to “help create a statutory structure that protects all Nevadans, not HOA collection companies.”
“This problem is directly impacting our members and the goods and services they provide,” said Duy Nguyen, executive director and CEO of the Asian Chamber of Commerce. “Without fixing this through solutions recommended by CHAMP, the recovery of our state’s fragile economy will be further delayed.”
Michele Johnson, CEO of Consumer Credit Counseling Service in Clark County, sees another side of the story. “We work with low and moderate income families throughout Nevada looking to purchase homes,” said Johnson. HOA collection fees follow the property and hold a “superpriority” status, meaning they get paid before any other transaction can take place. “When my clients, who are receiving a federal grant, find out that a home has several thousand dollars in past due HOA collection costs on the title and that their loan will only pay for 6 months of back due fees, their dream of home ownership is quickly taken away,” she said. “The only people benefiting from this system are the HOA collectors.”
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Contact
Concerned Homeowners Association Members Coalition Forms
Sarah Thornton
702-239-0785
www.champnv.org
Sarah Thornton
702-239-0785
www.champnv.org
Contact
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