NEWPORT BEACH, CA—Homeowners associationscelebrated a legal victory in the Nevada SupremeCourt last month when it was decided that that HOAs wereallowed to foreclose on homes and then sell them for pennies on thedollar to recoup delinquent payments rather than waiting years forlenders to foreclose on the homes themselves. According to anarticle in the Wall Street Journal,the Mortgage Bankers Association has claimed thatmortgage lenders could lose as much as billions ofdollars in security interests by this practice, but MichaelMeyer, managing principal of locally basedinvestment-management firm TwinRock Partners, saysthese fears are unfounded and that the ruling is a good thing forall involved.
According to the article, TwinRock purchased roughly 100 homesat Nevada HOA sales in the past two years that it hopes to sell ata huge profit. GlobeSt.com spoke with Meyer to discuss theimplications of the ruling and what it means for lenders and thehousing market.
GlobeSt.com: Should HOAs have the right to auctiondelinquent homeowners' homes without the blessing of the mortgagelender?
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Carrie Rossenfeld
Carrie Rossenfeld is a reporter for the San Diego and Orange County markets on GlobeSt.com and a contributor to Real Estate Forum. She was a trade-magazine and newsletter editor in New York City before moving to Southern California to become a freelance writer and editor for magazines, books and websites. Rossenfeld has written extensively on topics including commercial real estate, running a medical practice, intellectual-property licensing and giftware. She has edited books about profiting from real estate and has ghostwritten a book about starting a home-based business.
