The massive lawsuit is the latest, and the most spectacular, development in an expensive battle over foreclosed houses in Las Vegas that already has resulted in a score of competing bills in the Nevada state legislature, fights before various state agencies, and dozens of lawsuits, including some in which the participants accuse each other of abusing the legal system.
On one side, real estate investors who are buying up hundreds of homes in Las Vegas accuse homeowners associations of hiring debt collectors to charge fees that are illegal under Nevada’s unique real estate laws. Bank of America filed a similar lawsuit against associations and collections companies in February.
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