| Classes For 2012 |
Collections for Boards
August 16, 2012
4-6pm
Suncoast Hotel & Casino
More Information |
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File Processing Timeline (Non Judicial Foreclosure)
| Pre-Lien Letter/Intake |
| After the file is submitted to Absolute by the Management Company, Absolute verifies there is no Bankruptcy action and verifies mailing address and ownership information. A Pre-Lien Notice is sent out 1st class and certified to advise the homeowner to pay within 15 days or a lien will be filed. |
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| 15 DAYS |
| Lien (Notice of Delinquent Assessment) |
| Should the owner not pay, Absolute will record a lien on the property and send out a Notice of Lien 1st class and certified to every known address. This notice informs the owner a lien has been recorded and that payment should be sent immediately to avoid further action and costs. |
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| 30 DAYS |
| Pre-Notice of Default Letter |
| Should the owner not pay, Absolute will send a Pre-Notice of Default letter to the owner 1st class and certified. This letter gives them 15 days to remit payment. The reason why this letter is sent is that once the TSG is ordered; there is outside cost involved and significant cost is added to the account. This is a last ditch effort to get the owner to pay or make a payment plan to avoid higher collection costs. |
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| 15 DAYS |
| Notice of Default and Election to Sell |
| Should the owner not pay, Absolute records a Notice of Default on the property that states the owner must pay or the HOA may elect to sell the property. A Title Sale Guarantee (TSG) Report is ordered and within 10 days of the recording of the NOD, a copy is mailed to every party holding interest on the TSG Report (ie. 1st Mortgage, homeowner and all other lien holders). There is a 90 day waiting period before the sale date can be set. Absolute will monitor the ownership and bankruptcy records monthly during this holding period. At this time, we also send the Authorization to Publish to the Manager for Board signature. We will monitor any Sr. foreclosure action. |
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| 90 DAYS |
| Notice of Sale |
| If Absolute has received the Signed Authorization to Publish back, we review the file to make sure all steps were done appropriately. Then a Notice of Sale is recorded and published with Nevada Legal News for 3 weeks. The Notice is also posted at the property before published. The posting of the property is what usually gets the homeowner (or renter) motivated to contact us. The sale can be postponed up to 3 times if necessary. Absolute monitors ownership and bankruptcy actions. We will monitor any Sr. foreclosure action. |
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| 21-25 DAYS |
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| The sale is held in the lobby at CAMCO. The following will happen: Third Party Buyer/Owner - the HOA will receive payment of delinquent assessments. No Third Party Buyer - the property will revert back to the HOA. The deed will be recorded in the HOAs name and the Manager/Board will be advised to obtain insurance on the property. |
POST FORECLOSURE TIMELINE
Absolute Collection Services, LLC is the only agency that offers a Post Foreclosure Option that assists HOAs in collecting the delinquent assessments on the property after foreclosure. Below is a timeline of those events.
| Intake/Foreclosure Notice |
| Upon delivery of the recorded deed in the Association's name, Absolute will send a Notice of Foreclosure to the tenant and previous owner of the property. This notice also serves as an eviction notice because it notifies the occupant/previous owner that the HOA has taken possession of the property and that they have 90 days to remit rent payments to the HOA or arrange for a payment plan or eviction proceedings will take place. This letter gives a sense of urgency to the occupant/previous owner to remit payment or be faced with eviction. Also, most of the time, the owner is under the false pretense that as long as they are current with their mortgage company, the HOA cannot foreclose. If the property is in the HOA's name and the occupant is current with their mortgage, the bank usually opens an escrow and pays the account - adding the delinquent balance to the owner's mortgage. |
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| 90 DAYS |
| Eviction/Injunction for Illegal Rents |
| In the rare case that the Foreclosure Notice did not bring a solution, an eviction will take place. A 5 Day Notice to Quit the Premesis is served on the property by the Constable. At this point, the occupant has 5 days to remit payment or be escorted off the premises. Should the HOA find out that the property is occupied by a tenant that is paying rent to the previous owner (this is usually found out at the Foreclosure Notice Stage), an Injunction can by filed with the Court as the previous owner is accepting illegal rents because they no longer own the property. The serving of this Injunction to both the tenant and owner is powerful incentive for payment. |
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| 5 DAYS |
| Eviction Proceedings/Renting the Property |
| The Constable and locksmith will show up at the property in order to escort the owner from the premises. We have a program that assists in placing renters in the property. An incentive to get a renter in the property is to offer rent at 1/2 the value. The rent goes directly onto the homeowner's delinquent balance and any outstanding expenditures from the Association. A special lease agreement is used which fully discloses that the Sr. Mortgage Company may foreclose at any time and the HOA is not liable for this. The renter would also be responsible for maintaining the property which takes the liability off of the Board. |
The property may be deeded back to the owner at any time when paid current.
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