ZZZ - GMG - VEGAS INC 2011-2014

October 03, 2011

VEGAS INC Magazine - Latest Las Vegas business news, features and commentaries about gaming, tourism, real estate and more

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IN BUSINESS COURTS SOUTHERN HIGHLANDS HOA SUED OVER LIENS ON FORECLOSED HOMES Trim the top portion of this ad to 10 inches tall. Edit should be here. By Steve Green senior staff writer In their latest blast at Las Vegas-area homeowner associations, investors in foreclosed homes have filed a class action lawsuit against the Southern Highlands Community Association. Like many pending lawsuits about the same issue, the new suit charges the Southern Highlands HOA has been requiring buyers of foreclosed homes to pay "unlawful lien amounts'' and "excessive'' amounts under the association's recorded covenants, conditions and restrictions (CC&Rs). The suit was filed in Clark County District Court by lead plaintiff and investor Prem Deferred Trust, which is represented by Adams Law Group. Prem and Adams Law Group regularly litigate against Nevada HOAs and their collection agencies over charges investors in foreclosed homes have been required to pay excessive collection costs, HOA assessments, fines and fees that accumulated while homes sat vacant awaiting foreclosure. Adams is also involved in litigation contending collection agencies for HOAs are unlawfully threatening to foreclose on homeowners over what Adams calls inflated costs for delinquent assessments and fines. The state Supreme Court is expected to weigh in with a decision on whether the state Financial Institutions Division, which regulates collection agencies, can limit collection costs related to HOA assessments, fees and fines. Even before the Supreme Court ruling, Clark County District Court Judge Elizabeth Gonzalez ruled June 2 that HOA "super priority" liens against homes for unpaid assessments are limited to nine times the monthly HOA assessment, plus costs for needed emergency repairs. In the new lawsuit, Prem Deferred Trust said it purchased two foreclosed properties in Southern Highlands but then was forced to pay off excessive liens the HOA and its collection agencies had filed against the properties. In one instance, collection agent Alessi & Koenig LLC demanded Prem pay $2,742, the suit says. "Much of the payment exceeded the amount plaintiff was required to pay pursuant to (Nevada law) and the CC&Rs,'' the lawsuit charged. Prem charged that "in hundreds of instances over the last several years,'' the Southern Highlands HOA improperly obtained money from Prem and other potential lawsuit class members with | 3 OCTOBER 2011 | 13 the alleged overcharges. Besides seeking class action certification, the suit seeks unspecified damages and an injunction blocking the HOA from "filing, claiming or asserting any demands for unlawful lien amounts, excessive CC&R amounts or any unlawful or improper amounts related thereto.''

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