RRFS COLLECTION PROCESS

THE COLLECTION PROCESS

Step 1 – Boarding the Account

• The delinquent balance will be reviewed to determine if the delinquency is due to assessments or late fees and fines.
• Ownership will be verified via the Clark County Assessor’s Web Site.

Step 2 – Intent to Lien Letter

• An Intent to Lien Letter is mailed certified and first class mail to all known addresses. The letter informs the homeowner of the following:
  • This gives the homeowner 10 days--or whatever period is specified by the HOA’s collection policy-- to reinstate the account before the Notice of Delinquent Assessment Lien is prepared and recorded.
  • Informs the homeowner that an additional fee may be charged if they do not pay within the specified time period.
  • Informs them of their right under Federal Law to dispute the validity of the debt within 30 days of the original notice.

Step 3 – Notice of Delinquent Assessment Lien

• A Notice of Delinquent Assessment Lien is prepared and recorded. A copy of the Lien along with a cover letter is mailed certified and first class mail to all known addresses. The cover letter explains the following:
  • Informs the homeowner that their right under Federal Law to dispute the validity of the debt is still in effect.
  • The homeowner is given the option of alternative payment arrangements.
• The Lien must be mailed and remain on the property for a minimum of 30 days before the Notice of Default may be recorded

Step 4 – Intent to Notice of Default

• An Intent to Notice of Default letter is sent to the homeowner. It informs them of the following:
  • Informs the homeowner that if no contact is made with Red Rock within 10 days from the date of the letter, the Notice of Default and Election to Sell will be prepared and recorded.
  • Informs the homeowner that an additional fee will be charged if they do not pay or contact our office within 10 days.
  • The homeowner is given the option of alternative payment arrangements.

Step 5 – Notice of Default and Election to Sell

• A Notice of Default and Election to Sell is prepared and recorded. Within 10 days of the recording date, notice must be mailed via first class and certified mail to all known addresses as well as all addresses provided by the title company listed in the Trustee Sale Guarantee (TSG).
• The Notice of Default must remain on the property no less than 90 days after the recording of the Notice of Default before a Notice of Trustee Sale can be scheduled.

Step 6 – Intent to Notice of Sale

• An Intent to Notice of Sale letter is sent to the homeowner. It informs them of the following:
  • Informs the homeowner that 60 days into the 90 day waiting period have lapsed.
  • Informs the homeowner that an additional fee will be charged if they do not pay or contact our office within 30 days from the date of the letter.
  • The homeowner is given the option of alternative payment arrangements.
• A letter is mailed first class to all known mortgage holders. The letter informs them that the Association’s foreclosure sale is imminent and that their positions might be in jeopardy.

Step 7 – Permission of Publication

• Permission of Publication is mailed to the Board of Director’s care of the Community Association Manager.  The Board must agree that the property is to go to foreclosure sale and a Board member, preferably the President, signs and dates the Permission of Publication form and returns it to Red Rock.
• Once the Permission of Publication is returned signed the following will occur:
  • The file will be reviewed completely.
  • All returned mail will be reviewed.
  • All Management Company records will be reviewed.
  • If there has been phone contact with the homeowner a courtesy phone call will be made.

Step 8 – Notice of Trustee Sale

• Notice of Trustee Sale is mailed first class and certified to all known addresses as well as any additional addresses or names listed on the TSG. The notice advises the homeowner of the imminent foreclosure sale.
• Notice of Sale is published in an authorized publication for 3 consecutive weeks.
• The Notice is posted on the property.
• Information for the Ombudsman is provided on the Notice of Sale per NRS.
• On the 4th week a board member, preferably the President, or the Community Association Manager, with the Board’s approval, must sign the final permission to go forward with the sale.
• The sale is held at the County Court House Steps at its designated time and day.
• The property can revert to the Association, meaning there are no bidders and the Association takes possession. 
• The property can be sold to a third party bidder and a new owner takes possession.