The mortgage serving unit of Bank of America this week filed a lawsuit in Nevada against dozens of homeowners’ associations, their trustees, and collection agencies over fees the groups charged to B of A after certain homes went into foreclosure.

BAC Home Loans Servicing LP filed suit Jan. 31 in U.S. District Court in Las Vegas, charging the HOAs and their trustees are wrongly demanding BAC pay fees and collection costs it’s not obligated to pay. BAC’s lawsuit notes liens HOAs can file against properties for unpaid HOA assessments are limited under Nevada law to nine months of assessments.

“BAC services hundreds of residential loans secured by properties that are subject to these homeowners’ association liens. To maintain clear and marketable title to these properties, BAC has tendered payments to the trustees of many homeowners’ associations that, if accepted, would fully satisfy their super-priority liens. But the trustees of many homeowners associations are rejecting these payments based on erroneous interpretations of the law as they insist on accepting only payments that include the disputed collection costs,” the lawsuit said.

At least five collection agencies are named in the suit for their part in demanding, or inserting, debt collection costs onto the totals demanded of BAC.

It’s not the first lawsuit arguing against foreclosure and HOA fees. Homeowners and investors sued Nevada Association Service and their collection agencies for tacking on extra fees. HOAa and their debt collection agencies have consistently said they need to cover their collection and legal costs to keep HOAs afloat and their budgets balanced.

Next Article: DBA International Responds to Consumer Advocates' Call ...