Help decipher sentence in Bylaws

The section of our Bylaws regarding collection of assessments says the association may remedy a delinquent assessment by either or both of, 1. Enforcement by Suit or, 2. Enforcement by Lien. This is the text regarding the enforcement by lien option:

"2. Enforcement by Lien. There is hereby created a right of claim of lien, on each and every Lot to secure payment to the Association of any and all assessments levied against any and all Owners together with interest thereon at a rate of twelve percent (12%) per annum from the date of delinquency until paid, and all costs of collection which may be paid or incurred by the Association in connection therewith, including reasonable attorney's fees. At any time within one hundred twenty (120) days after the occurrence of any default in the payment of any such assessment, the Association, or any authorized representative may, but shall not be required to, make a written demand for payment to the default Owner, on behalf of the Association. Said demand shall state the date and amount of the delinquency. Each default shall constitute a separate basis for demand of claim of lien or a lien, but any number of defaults may be included within a single demand a claim of lien. If such delinquency is not paid within ten (10) days after delivery of such demand, or, even without such written demand being made, the Association may elect to file such a claim of lien on behalf of the Association against the Lot of the defaulting Owner. Such a claim of lien shall be executed and acknowledged by any officer of the Association, and shall contain substantially the following information".

I don't know how to highlight the sentence in that clause that confuses me so here it is again: "At any time within one hundred twenty (120) days after the occurrence of any default in the payment of any such assessment, the Association, or any authorized representative may, but shall not be required to, make a written demand for payment to the default Owner, on behalf of the Association. Said demand shall state the date and amount of the delinquency".

I can't figure out the timing that seems to be implied there. What happens at 120 days? Does a door open or does a door close (so to speak) at 120 days?

We had a policy that after 6 months of non-payment of dues, we started the lien process. If that owner didn't respond in payment then after a year we would start the foreclosure process. It really depended on the situation. You documents allow you to start the lien process after 120 days of missing assessments. Which is an option to pursue after 120 days. Some HOA's don't lien on any timely basis so the 120 days option leaves it open to pursue after 120 days if that were to pass.

The difference between a suit and a lien is big for a HOA. A lien and suit are BOTH court judgements. However, a suit will allow an owner to SELL the property and move without paying the judgement. They can go up to 7 years or more NOT paying or never paying the judgement. A lien holds the owner to the property. The owner can't sell the property until they pay the lien which accumulates as long as they own the property and don't pay. They can rent the property out but they are stuck.

It's always a better idea to lien than to sue in a HOA. Just keep that in mind when deciding if you want to lien or sue. A lien doesn't necessarily need a lawyer either.