Last week the mortgage serving unit of Bank of America filed a lawsuit in Nevada against dozens of homeowners’ associations over fees the associations charged to Bank of America after certain homes went into foreclosure. The suit claims that while Bank of America tendered payment of the 9 month super lien on properties it holds title to via a foreclosure, the homeowner association refused to accept the payments and demanded payment of not only the 9 month super lien but also the payment of disputed collection costs. Bank of America challenged the calculation of what is due under the super lien and believes associations are not entitled to anything more than the 9 months of assessments.
The calculation of super lien payments has been an on-going issue in Colorado since our super lien was enacted in 1992 and has resulted in at least 2 appellate decisions attempting to resolve the issues. If Bank of America is successful in Nevada it could mean that it will then choose to pursue similar litigation in other states to clarify mortgage holder liability for super liens or even consider changes to statutory provisions such as HB 11-1197 which was introduced on February 4.