Do I have legal/ethical recourse?

I pay my HOA dues quarterly. I was late on my dues for the quaeter starting 10/1/2010. I paid the late fees and the assessment for the next quarter on 1/13/2011 before late fees would be assessed for the first quarter of 2011. The check was posted on 1/26/2011.

Today (2/25/2011), I received two letters from a collection agency. The first letter (dated 1/27/2011) stating that the HOA contacted them to collect the remaining payment ($114.50) for late changes and a $90.00 collection charge (dated 12/29/2010) and:

Late Changes $24.50
12/29/2010 Collection cost $90.00
12/30/2010 Title Research $35.00
1/6/2011 Mailings $6.00
1/6/2011 Notice of intent to Lien Fee $225.00

Total $380.50

The second letter 2/9/2011 had the additional charges:

1/26/2011 Collection Cost $90.00
1/6/2011 Release of Lien Preparation Fee $35.00
2/9/2011 Record Notice pf Delinquent Assessment Lien $34.00
2/9/2011 Record Release of Lien $18.00
2/9/2011 Notice of Delinquent Assessment Fee $325.00

Total $882.50

I travel a lot in my job and opened both letters when I got home on 2/25/2011. This is the first time that I became aware of any of the above actions. So, I have a lien on my title and over $850 in fees for a $24.50 late fee. I paid the collection agency to get the lien taken off my title and plan to take the HOA to court to recover that fees. What do I need to know in advance while pursuing an over zealous HOA?

Thanks for any replies,

Ike Johnson

Suing a HOA is suing yourself and your neighbors. I would recommend talking to the Management company or whoever is responsible for collecting funds to remedy the situation. Ask them what their policy is. Are you sure it's quarterly payment setup? COMMUNICATION IS KEY.

At this point, you may just call this a "wash" and hope to improve arrangements next time.

Thanks for the replys.

I should have mentioned that I live in a single family home in an upscale gated community on a lake (which may or may not matter) of which is a small percentage of the properties that the HOA oversees.

And, that I paid the 4th quarter and 1st quarter assessments (and 4th quarter late fees) on 1/13/2011. I just feel that this is a breach of the fiduciary duties of the HOA; or, at least a misuse of power.

I will contact the management company that works with the HOA before filing a lawsuit.

IJ

Maybe this upscale community could consider EFT so you would never have to worry again.

Our middle-class community does!

One minor point, I would send any correspondence tp the management company Certified Return Receipt mail pertaining to this topic. I know the burden falls on the homeowner but I do not understand why someone would not send you a notice of default--chekc your documents for this type of requirement.

If offered by your management company, set up an automatic transfer of funds from your checking account to the HOA.

After I paid the assessments, the collection agency was directed by the HOA to proceed with a lien on my property. I find that to be particulary egregious.

Hi Ike

Sorry for all the trouble you are experiencing. Sounds like a disconnect between the HOA & the collection agency.

What you can do:

Make copies of your payment - receipts, cancelled check front/back - and forward this to the collection agency. Going on the assumption that the subsequent action is an oversight, ask them to confirm to you in writing that the account has been paid & satisfied, date included. Keep tabs on your credit report.

Anything showing up after the paid date of the past due HOA assessments can be challenged with the collection agency. If they do not change the status on the credit report to reflect "satisfied", keep after them until they do so. All communication ought to be in writing as telephone calls are harder to document.

This site may be of some assistance to you -> http://ag.ca.gov/consumers/general/collection_agencies10.php

Good luck!

I'm not so sure I buy into the suing a HOA is suing yourself and your neighbors argument. When someone like Ike is making a concious effort to make right then shouldn't his neighbors understand? There has to be some relief for mitigating circumstances. It's the people that blatantly disregard the rules and don't pay at all that should have liens, lawsuits and major fines. This guy's trying. Cut him some slack.