HOA collectors want end to cap on delinquent fees on foreclosures
Three homeowners association collection companies are seeking a temporary restraining order to stop a state agency from, in essence, limiting how much they can collect in delinquent fees on foreclosures. The lawsuit filed this week by Nevada Association Services, RMI Management and Angius & Terry Collections is in response to an order and advisory opinion handed down in November by George Burns, commissioner of the Financial Institutions Division, which regulates collection companies. That order, sought by investors who buy foreclosure homes at courthouse auctions, limited collection companies to collecting nine months of delinquent assessments only. Traditionally, collection companies have tacked on their fees to the nine months of delinquent assessments as allowed in state law, but the ruling said that can’t be done.