Law to Protect HOA, Owners a Plus

NEWPORT BEACH, CA—Homeowners associations celebrated a legal victory in the Nevada Supreme Court last month when it was decided that that HOAs were allowed to foreclose on homes and then sell them for pennies on the dollar to recoup delinquent payments rather than waiting years for lenders to foreclose on the homes themselves. According to an article in the Wall Street Journal, the Mortgage Bankers Association has claimed that mortgage lenders could lose as much as billions of dollars in security interests by this practice, but Michael Meyer, managing principal of locally based investment-management firm TwinRock Partners, says these fears are unfounded and that the ruling is a good thing for all involved.

According to the article, TwinRock purchased roughly 100 homes at Nevada HOA sales in the past two years that it hopes to sell at a huge profit. GlobeSt.com spoke with Meyer to discuss the implications of the ruling and what it means for lenders and the housing market.