Our homeowners association has a lot of uncollected debt. Any suggestions for collecting past due fees?

Question

We have unsuccessfully tried water cutoff, collection agency, liens, and suits. We are willing to try them all again if there is a method that works.

Answer 1

Read your declaration (aka CC&Rs) and bylaws. That should spell out some of the actions you can legally take. Also check your state statutes to find out if they limit or expand what your documents say.

One reason for a lot of uncollected debt is that the Association may not be trying to collect the debt. That might be the case because you state that "we are willing to try them all again." You must be vigilant. If someone is late, charge them the maximum allowed by your state and governing documents. At the minimum number of days allowed, send a certified letter demanding them bring their assessments current within the alloted amount of time. If they don't you MUST file a lien. If you don't, and their bank forecloses, or they sell the unit, or if they declare bankruptcy, the Association could loose the whole thing. You have to work on your collections constantly. One month you take a break, and they will get worse.

I'm surprised you were able to have the water cut off. That can, in some states, set you up for big problems. Normally, you must let someone access their home and be able to get water, and usually electricity (health issues).

For those out there that are going to argue that it is so unfair for "the association" to lien a unit - think about this: The owners that aren't paying their assessments are still using the electricity, insurance, water, and other amenities that all the other owners are paying for. Why should they get a free ride off the others? Especially when their debt will probably increase the assessments for everyone else!

Answer 2

State specific. In many states, O/A dues are a lien on the property that can cause the property to be sold for past due amounts much like past due taxes.

I'd have my HOA check with their atty. Otherwise filing judgements and liens agains the property requiring the settlement of the past due amounts at sale are about the only option you have other than perhaps a one time amnesty to offer to let everyone up to date at a face or even reduced value. Unfair; but it can be effective

Answer 3

First off this is coming from some one who was about to buy a new home until I saw what kind of control the HOA has over the home owner...oh can it be called a home owner since really the HOA who can take control over about every detail.

You didn't state why are these people not paying? You have a lot of uncollected debt so that tells me there might be some problem with the board or HOA in general. Cut off water...leins...lawsuits and they still didn't pay? Have you even talked to all these people to find out the grievances? Of course if you didn't do all that in the first place I'm not sure I would want to pay a cent if someone was cutting off my water taking me to court and so on.

I think you need to stand back and find out what is the issue going on. Elderly not remembering to pay? Someone taking issue to say can't put up a fence or along those lines? Someone getting a fine because their son dropped a toy getting out of the van and then getting fined because toys laying in drive way? Someone planting flowers on mothers day but forgot to get board approval? I think you need to find out what is going on and then deal with these issues. Be a good neighbor and don't make a fuss over piety issues.

Answer 4

Yea, get rid of the HOA. Nothing but a scam.

The person making the most money from the homeowner dues is the lawyer retained to file liens against non-paying properties.

Answer 5

Congress, specifically the Democrat majority Congress traditionally. Clinton had a balanced budget because of the fact of he Republicn majority Congress which he worked with. Obama in simple terms blames Republicans for each little thing. He leads into the abyss. Now, with Harry Reid, Senate Majority chief, refusing to debate many charges that come from the domicile, and no budget below Obama from 2009 till this year, the spending is insane. A democrat budget trick is to call an develop over the previous year's budget The baseline. The Stimulus continues to be interior the cost selection each year. each and every little thing continues to be in, yet isn't used for the comparable issues. that's their play funds to woo voters or pay off individuals.

Answer 6

File suit. Attach property of the defendant. Have the sheriff sell the property. Others will soon get the message.