Lien vs, Collections

Started by SusanB22 • 4 replies • 2221 views

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SusanB22 (California)
Posts: 5

Posted:

Have any HOAs had any luck with using a collections agency vs. placing a lien on a property? We are considering using a collections agency to try to recover the $$$ that some current homeowners are behind on. Liens don't necessarly seem to be successful. Any input?

RobW (California)
Posts: 279

Posted:

My HOA has had good results with this approach. The collection process had a set series of steps, starting with past due statements, a letter threatening collection, and then turning it over to a collection agency once the total owed, including late fees and any legal costs, reaches $1,800.

Just FYI, here in California liens and foreclosure are not options for past-due fines levied for breaking Association rules - only for late fees and associated costs around delinquent Association fees and special assessment payments. Collection agencies and small claims court are an unfortunate reality here.

Rob

DeeS1 (Michigan)
Posts: 223

Posted:

We have had MUCH better success with a collection attorney vs. collection agency. Our homeowners seem to take a letter from a lawyer much more seriously. We do, however, use the attorney to also file the liens etc. We usually take it all the way to the Intent to Foreclose letter and have had all but one homeowner pay when they get that letter and a copy of the foreclosure publication. We have never needed to actually proceed with the foreclosure.

DanielH1 (California)
Posts: 482

Posted:

We've had good results with collection agencies. In California, at least, there are HOA collection agencies who focus exclusively on debts owed to HOAs.

RitaS2 (California)
Posts: 1

Posted:

Have you tried Small Claims Court? Our HOA uses a service that files liens, handles the Small Claim and searches for bank levys. Not a 100% .. but has been successful on more than one account.

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