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Friday, April 1, 2011 | 1:29 p.m.
Sun Coverage
A judge in Las Vegas on Thursday issued a temporary restraining order blocking today's planned foreclosure of a home by a collection agency for a homeowner association.
Clark County District Court Judge Jessie Walsh issued the order after yet another homeowner sued the collection agency, Nevada Association Services.
Nevada Association Services (NAS) is at the center of legal and political battles over how much homeowners -- and investors in foreclosed homes -- should be required to pay for past-due HOA assessments, fines, fees and collection costs.
Several lawsuits are pending involving NAS and other collection agencies including a proposed class-action case in federal court in Las Vegas claiming NAS has violated the federal Fair Debt Collection Practices Act and other counts.
The suit claims Nevada Association Services has been demanding collection fees and costs that were never authorized by homeowner associations, never incurred by HOAs and never agreed to by homeowners in community covenants, conditions and restrictions (CC&Rs).
Attorneys for NAS have denied those allegations and NAS says its collection activities are necessary to help homeowner associations meet budgetary needs at a time when those budgets have been squeezed by the glut of foreclosures in Southern Nevada.
Walsh on Thursday issued the temporary restraining order at the request of attorneys for Beatrice Management Group Inc., which says it owns a home at 7413 Midnight Rambler.
"The court finds that a foreclosure sale of the subject property would constitute irreparable harm according to the Nevada law that finds that real property is unique and a forced sale contrary to law would thereby constitute irreparable harm," the order blocking the foreclosure said. The order may remain in place until an April 12 preliminary injunction hearing.
Beatrice, in a lawsuit against NAS, said the foreclosure sale shouldn't proceed until the court has a chance to rule on what Beatrice calls "illegal charges, demands and fees being asserted by NAS in order to intimidate Beatrice into paying whatever unlimited and unfettered amount NAS claims in order to avoid foreclosure."
Beatrice charged in its lawsuit that NAS claims Beatrice owes the Terra Bella Homeowners Association $2,923 in unpaid monthly assessments -- when, according to Beatrice, it made seven payments to the HOA but those payments were returned to Beatrice's bank.
"More importantly, NAS now inexplicably claims Beatrice must pay $7,505 in order to avoid a foreclosure sale," the lawsuit charges.
"NAS has no authority, contractual or statutorily, to support or authorize the addition of nearly $5,000 in 'fees' and 'penalties' in order to avoid the foreclosure of the residence," charges the suit filed by attorney James Rosenberger of the Las Vegas law firm Pico Rosenberger.
The complaint added "NAS has refused to compromise or even discuss a compromise regarding the illegal and unlawful charges and demands they are making."
David Stone, owner of NAS, said today that temporary restraining orders are not unusual and don't reflect on the merits of the collection action.
"We're going to fight this and Beatrice will be paying my attorney's fees," Stone said, adding that the homeowner association has seen tenants come and go from the property at issue and "this isn't a sympathetic plaintiff."
With the Legislature looking at reigning in HOA collection fees, Stone said his fees haven't changed in six or seven years and that all that's changed is that there seems to be growing sympathy for those "trying to avoid their contractual obligations."
Separately, Las Vegas attorney and investor Puoy Premsrirut has responded to allegations leveled against her this month in a lawsuit filed by NAS and other collection agencies.
That suit claims Premsrirut and her brother Rutt Premsrirut, also an investor in foreclosed homes, have been abusing the legal system and intimidating homeowner associations in hopes of avoid paying legitimate costs.
But Premsrirut, who regularly litigates against collection agencies, said in a statement to the Las Vegas Sun: "In a retaliatory move, the debt collectors now attempt to silence the voice of the attorney and her brother by filing an `abuse of process' claim against them. Puoy and Rutt now ask, `When is it an abuse of process to demand due process?"'
Commenting on the class-action lawsuit filed by she and attorney James Adams against NAS, Premsrirut said that "Instead of meeting these allegations head on and defending his collection practices, NAS owner David Stone has apparently vowed to spend millions of dollars gained from his dubious collection scheme to crush Puoy's attempt to hold him accountable. On behalf of Nevada homeowners everywhere, Puoy has vowed to fight back!"
If you owe, pay. If you don't owe anything then don't pay. Don't hide behind a legal system to avoid paying what you legally owe. If the oollection agency is abusive then they should be slapped down, but please do not be sympathic to people who don't pay what they should only because of economic times. Aside from this, HOAs should be working with their homeowners in order to get things cleared as long as the homeowner is working with them. This Brother/sister attorney act needs to be shut down and shut down HARD! They are doing more damage than good, and creating a bigger mess than there needs to be done. A warning to them you can't hide behind the legal system forever, and sooner or later you will pay the piper and it will be UGLY and it will be painful, so brace yourselves.
This is a good example of NAS's business practices. Stone "games" the legal system. My lawyer says "he is in the legal sweet spot". The place where his questionable fees are too small to litigate and large enough for him and others like him to get very rich.
These collection agents abuse homeowners daily!
Well Vipor89, you started out like you might say something intelligent, but then you just went off the rails. This "Brother/sister attorney act" you are referring to...First, they are not both attorneys, Second, it is WAY more than just them. There are thousands and thousands of homeowners and investors that this has affected. There are numerous actions against NAS and their co-horts for these ridiculous charges. You may want to get your facts straight before you go running off at the mouth and threatening people. Otherwise, you better bring your lunch, cuz you're gonna need it.
if anybody wants to file a class-action lawsuit against Hampton & Hampton for HOA Collection Practices, let me know. I'd like to get in on that.
I would love it if RMI and Red Rock Collection agency were sued. I hate my HOA.
Only after big investors complained of HOA practices, did the courts and politicians begin to rein in some of these illegal practices. Thomas Jefferson warned of a society where only the cries of the rich are heard.
Welcome to Las Vegas.....
I think that we should add HOA's to the ballot and vote out these incompetent, control freak, and sometimes (if not all the time) criminal groups! Americans can take care of their own homes and neighborhoods without someone else to tell them what to do or how to live (if they can't then they do not deserve to own a home anyway!). We should also not vote for any person that supports HOA's they and the HOA's belong in communist countries, not the United States!
There needs to be a bill pass on Collection Agencies. They use strong arm tactic and surf for phone number on people who owe money. In surfing the phone directory, collection agencies usually contact the wrong person. I feel if a collection agency contacts you from surfing the phone directory and the person at the other end is not they one they are trying to locate, the collection agency should compensate the wrong person for bothering them and for being a nuisance. That exact thing happen to me today. I thought they said my name and once I realized that they had the wrong person, the collector got very veligerent, rude and disrespectful. I don't think I deserved that treatment considering I did not call them, they called me. I think the fees that collection agency charge exceed what is actually owed. I thing there should be a set fee that collection agencies can collect and HOA should do everything in their power to contact those who owe fees. Collection agencies have a mob mentality and that needs to change.
I can see both sides. I was on an HOA board for five years and saw the trouble these organizations go through trying to pay the bills when homeowners refuse to pony up their share. However, I will never live in an HOA community again. We had absolutely no power to enforce true threats to the community--out of control tenants, vicious dogs, dangerous property conditions. We could fine all we wanted, the people just didn't pay and then got delay after delay in court proceedings. We were owners stuck living in what was essentially a rental complex because so many of the owners were investors who couldn't give a crap what went on as long as they got their rent checks.
Never again!
I'm amused at the rantings of those who know who handles the Collections Dept. of their HOA.... I don't have a clue who handles the Collections from my HOA - could that be because I pay my HOA Dues as required? Only those who don't pay up every month (or quarterly or yearly) would know all about the evil collection agency. Pay what you owe and you won't be dunned by an evil collection agency. If you can't afford to pay then I guess you need to leave.
Sorry to disagree but not ALL Americans will take care of their homes/property - whether they know how to or not. My mother took great pride/care of her home and her property - she didn't need any association as an incentive to keep a nice home - fortunately she had an association that kept on top of her neighbor though - this person was a SLOB from the word go - and if not for the continued harassment by the association I shudder to think what my mother would have had to live next door to. Funny thing is the slob neighbor was one of those who complained constantly about the Association - my mother, otoh, could care less about the Association other than to pay her HOA dues. I guess that's because she kept a nice home and wasn't hounded for being a slob. The point I'm trying to make is that if you live right it won't matter that you have an association (as it pertains to you) It will help you out if you live next door to a slob though. So let the slobs continue to cry a river -
Attn: Mr. David Stone, you should look deeper into the ownership of the property at Midnight Rambler. The Courts should be told that Bradley Tubin is currently under criminal indictment with the US Attorney's Office under Operation Stolen Dreams (last June 2010). Public records show that he transferred again another property to Beatrice Management which co-incidentally he is the president of. He pretends to everyone that he is only the property management company but the properties were bought either under his name or through straw buyers (which is what he was indicted for). He rents his properties by the month or by the hour (not confirmed) and denies personal responsibility for the property. You should investigate this man and ask all his former AND current neighbors the truth. You are not the only HOA he has not paid AND all his properties are under foreclosure or have been foreclosed. THIS IS ALL PUBLIC RECORD.
Some men rob with a gun and some with a fountain pen.
HOAs are like a cancer (the uncontrolled growth of unwanted cells) that invades the homeowners every moment, forcing changes that strangle the life out of him or her, to no good outcome.
HOA collection agencies are like a mold upon that cancer. They are that oderous substance that offends all that come near, grows best in dark dirty places and once in is often impossible to remove.
The only solution is prevent the mold from spreading and cut the cancer out or starve it until it dies or shrinks to an inoffensive and tiny mass that becomes absorbed and neutralized, taking the offending mold with it and freeing the patient.
As in all cancers cut out or starved, one must always guard against reoccurrence. All necessary measure must be take to prevent it from feeding, gaining strength and common entrance.
Keep your property clean, don't paint your home purple and pay your bills. You'll never see or hear from the HOA or collection agency. Easy breezy.
Collection agencies don't get involved until the bill is long past due. Usually these people have been sent several bills, have been called, have been notified that if they don't respond or address the amount owed...as a last resort the bill will be sent to a collection agency. 99.9% of these dead beats just throw their obligations in the garbage, don't answer their phone, claim to have moved and any other excuse they can grab on to to avoid paying their financial obligations. PAY YOUR BILLS. If you disagree with the charges, make your case and don't just ignore it. As I said 99.9% of the time it is people just ignoring paying their obligations.
I agree with azsk8 and Tom D about paying your HOA fees and you wont be dealing with the collection agencies however in the article it states that Beatrice made 7 payments to the HOA and the money was returned to the bank
It seems to me that Beatrice was following the rules andthe HOA ignored the homeowner and the collection agency stepped in and is trying to collect an additional 5000 plus for its services which is extortion if there is no agreement by the homeowner with the HOA and NAS for what amount can be levied for non payment
Concerned123 its obvious you must be a neighbor or have an ax" to grind with Beatrice Management but the last time I checked Beatrice in the article states they willing to pay their fees ,was refused and are STANDING UP for what they feel is right This has nothing to do with as you say PUBLIC RECORD and Tubin's other problems GET YOUR FACTS STRAIGHT! its people like you that are the root of the problem there are 2 sides to every story and it pisses me off that people slander/ defame etc and say its all true without actually performing their due diligence so they are able look intelligent and important
I checked the public records and Beatrice management owns only ONE property and that is@7413 Midnight rambler and Bradley Tubin owns 2 homes which are not in HOA s(gated communities) but free standing private properties
People get a grip /read the article its about Beatrice STANDING UP to unjust COLLECTION fees NOT the HOA fees The collection agency NAS cant charge what they want 5 grand or 500 grand It has to be in writing and agreed to if you dont pay your HOA --you will be charged x fees only not a rising scale
I applaud Beatrice Management for STANDING UP
Everything in Vegas is crooked. Dont buy a house here unless you want to pay all of your money to live next to pimps, broke losers with too many kids and loud, dirty, rude Mexicans.There are no "safe" places to live here-its all trash. If you do buy a house expect to get ripped off by the realtor, the bank and the HOA. Its a scummy, scummy town with crooked, dirty people. DONT MOVE HERE.
@standup - I understand what you're saying regarding the attempt to make some payments - I was pretty much just referring to those who seemed to know the collection agencies involved with their HOA. If there's truth to the statement that payments were refused then yes, this DOES need to be further investigated. I just marvel at those who are so dead set against the HOA to begin with - and again, if you simply pay your dues and keep your house in good repair there shouldn't be any problem with an HOA at all. I work with an HOA on a daily basis and have personally seen them bend over backwards to work with and help out fellow homeowners - sometimes it works out fine and unfortunately sometimes it doesn't. It seems everyone who moves in wants to live in a nice, well maintained community but alas not all want to help to pay to maintain it.
Well, I've said it many times but I don't and won't buy homes in neighborhoods with homeowners associations. I was with a guy once who had a dead car battery and as I helped him swap it out in a five minute job the homeowners police (association board) came running over and warned him of a fine for the forbidden practice by cc&r's of car maintenance. They didn't know the difference between an optional oil change on the sidewalk versus swapping out a dead battery. Rules are rules you know! I've seen those same police in a different neighborhood walking around measuring the heights of peoples grass while they were on vacation. Between the money and the special interests I'd much rather look at a purple, polka dotted volkswagon sitting in somebodys yard than have to deal with the morons who all too often end up on the association boards taking care of their own agendas.
@azsk8fan
I agree with you What bothers me is this article is about David Stones collection agency NAS and its policies on behalf of themselves and NOT their client- an unknown HOA
If the filing lawsuit is true Why hasnt the HOA stepped in and accepted the monies owed and offered by Beatrice and Stop the foreclosure
The article also mentions that the issue is the additional fees $5000) charged by NAS BUT NAS and David Stone are refusing to compromise/ accept the fees owed on behalf of their client HOA
Is it not the purpose of the foreclosure proceedings to recover the HOA fees? Then Beatrice was willing to pay to prevent foreclosure and move on BUT NAS chooses to enhance their pockets unjustly ,ignore their obligation to the HOA and try to proceed with the foreclosure anyway....Why?
Having lived in three states with HOA's I can say Nevada's system is horrible. In VA the HOA cannot foreclose and there are strict limits on Fines, Notification methods, etc.. Prior to a home selling, a letter from the HOA is required that all Payments and Improvements are paid and met. The responsibility rests with the seller to meet the obligation or there is no sale. Most HOA's are managed in the Neighborhood and all meetings must be open (even though there may not be a comment period). If I put a warning on someones door I had to state the specific rule in the HOA regs plus I left my name and phone number so they could call me. In my current Nevada neighborhood when someone from California drives through and makes broad sweeping statements about what they think should be done, while having no involement in the community, I would just as soon eliminate the HOA.
"Some men rob with a gun and some with a fountain pen."
WoodySez1 -- you mean that old saying "a man with a briefcase can steal more than a man with a gun."
BRASS, lightfoot, newnvres -- of course any group of people with common interests are free to associate and make contracts. The problem I've seen is when one buys a home in an HOA then it comes down on you to deal with whatever leftovers the last owner or occupant neglected. I backed the attorneys off by demanding proof of the debt, which they did not or could not produce. Six months later another demand, same as the last demand, except with bigger numbers on it. The attorneys didn't bother to prove that one, either.
Anyone else notice how in the last 20 years this country moved almost completely from a production-driven economy to debt-driven?
"All money is a matter of belief." -- Adam Smith
I agree that pay your bills and be a good neighbor by maintaining your property to a basic standard and you would never hear from the HOA.
If the payments were refused one has to ask why and if wrongly refused then yes there is an issue.
Now onto the additional $5,000 in collection fees. First from my analysis not all that money goes to the collection company. The collection company had to pay a title company, filing of the lien at the recorders office, certified mail letter costs, process server and more. If the delinquent responded at the first intent to lien letter by management the cost would of been maybe $75-100.
You let it actually go to a collections company and then there is the additional costs. I agree sometimes people ignore bad news until you get that notice on your door that your house is about to be auctioned off.
Well well....so she wants to skip paying our bills and blame it on others. With almost $3,000 in unpaid HOA over many months, maybe even years and not even a clue that the bank was not cashing her checks. Collection agencies are only called after multiple multiple multiple....did I note multiple contacts to the home owner. The HOA is without the $3,000 so she should pay that immediately.....HOAs are used to pay insurance, pool maintenance, electicity, and yard maintenance....She has skipped out on paying the working class. I don't beleive her story. The collectin fees are necessary....although these may be excessive, she has not paid the original HOA. Pay the working class people who are maintaining your home....
HOA collection agencies are getting filthy rich, I know eventually there will be an class-action lawsuit.....I wish HOA's will disappear too. There are homeowners that are not paying their HOA's because they are losing their homes because of bad investments. If it is a good investments they are will pay or do everything to preserve it.
If people cannot afford a homeowner's association dues better not move into a community with HOA fees. If you cannot follow rules and regulations to benefit the community as a whole, do not movi into a community with HOA.
Do not impose on the rest of the homeowners paying our monthly dues on time. By not paying your dues, the end result will be us having to pay higher association dues to make up for lost unpaid dues for the community.
Judge is expected to rule on the law. However, the judges can decide based on either parties intent-- rule either side actions unreasonable-- the judge could deviate slightly.
One thing is certain, the HOA and the NAS will receive an unknown amount of money from the homeowner.
The US Government long ago determined that collection agencies are abusive. Not all but most. NAS Mr. Stone states above his collection fees have not changed in 6 to 7 years. Well , NRS 116 had a cap on HOA collection fees from at least 2007 through 2009. In 2009 for some strange reason the cap vanished and now all of a sudden there is abuse by collection agencies. NAS has no City of Henderson business license. Mr. Stone through his attorney claims his business is internet/mailing based only and is exempt ? How does NAS foreclose on a property without going to the property at least once to post the proper legal notices. Based upon Mr. Stone NAS just sends an e-mail to the owner and of course sends a letter via us mail.
Collection agencies are a necessary evil as long as they follow the rules and laws and do not abuse the process.
You gotta wonder what kind of morons buy into these HOA situations. All property owners pay property taxes, and some of those taxes pay the city's "neighborhood services dept." So anyone can call neighborhood services if there is a gross eyesore in the neighborhood, and it gets investigated, and the city fines the property owner if the problem is not corrected. So, the idiots in HOA's pay for the city to regulate them, but they also pay some dumb HOA to regulate them.
That is an un needed duplication. The HOA's, collection agencies, management companies, and lawers are just an entire industry of leeches sucking home owners dry. I am so glad I did not buy into that nonsense.
If you don't pay your electric or gas bill, they shut off your service. With HOA's, we can not shut off any service so assessing fines is the only recourse we have to get you to pay. These homeowners knew there were HOA fees before buying the property. If you did not want to pay these fees, don't move into that house and buy a house in NLV where there are no HOA's and the neighborhoods look like crap! I live in a neighborhood with HOA's but are they are very relaxed and don't bother owners like Sun City.
Under the HOA covenants of our association, the board has to specifically state that they don't want a collection to go to foreclosure otherwise a date is set. So my question - where is the HOA board in all this? As a member of our HOA board I know how careful we have to be about all collections. We do whatever we can to make payment plans to avoid having someone go to collections. We'd rather they work it out instead of pay it out. I haven't read all the articles, but I wonder if this got out of control because of excessive collection practices and because the board didn't take action and some automatic processing occurred.
I understand the frustration with NAS. We chose to stop using them 3 years ago.
I agree with pattygirl1692, cewl1701 hoarant and longtimevega
Midnightsun..Im in a HOA what you say the HOA pays and I pay
"HOAs are used to pay insurance, pool maintenance, electicity, and yard maintenance....Not true
HOA's pay common area landscaping and have rules for the community to conform to certain written standards
This article is about NAS refusing to accept payment for what is LEGALLY OWED to the HOA and to STOP the foreclosure proceedings--Why does NAS have the right to ignore their client.charge fees that are unjust and move forward and receive a home for practically nothing (foreclosure)...Again where is the HOA in all this? Where is the First Lien Holder assuming there is a Mortgage
if a foreclosure takes place?
NAS admitted making MILLIONS--Collection agencies making Millions?????...we are all in the wrong business or job
I applaud Beatrice Management for STANDING UP
Seems to me that every person who buys into a neighborhood that has an HOA knows full well what they are doing. You are given the information on what is allowed and not allowed within your community and you know the cost of what the HOAs DO provide for their community. Whether or not people like HOAs is one issue and that is one to be taken up with the HOA itself and with their neighbors, their community. It only lands in the lap of these collection companies when someone is not doing what they are obligated to do...pay the HOA bill that they signed up for. I will never understand the concept of people wanting to blame someone else when they have been irresponsible. Let's blame the debt collectors for asking us to be accountable...it is insane. I once got a seatbelt ticket. It was $37. I thought I mailed the check. I didn't. The next I heard of it was when I was denied renewal of my drivers' license and ordered to pay over $400 to get back in the good graces of the law and the DMV. Is that nuts? Ummm, a little. Whose fault is it? Mine! I paid the fees and will never again forget to pay a ticket. I am not suing the DMV or the city for my mistake.