Arbitrator/Negiotator For Back Dues

Started by BrianD2 • 3 replies • 1362 views

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BrianD2 (California)
Posts: 1

Posted:

Hi everyone,

We are a HOA seeking a company that can help us collect back dues that is not a collection agency or attorney because they are to expensive.

Do these companies exist that act as a arbitrator or negiotator but still have the punch behind them to get the money?

If they do what are the standard fees?

Anyone have any suggestions for California?

Thank you,

B

WillR (Michigan)
Posts: 68

Posted:

Brian. Have you tried going to small claims court. We found that to be the cheapest way. What we would do is send the person a letter and also a call. In the letter we stated what they owed plus late fees, then we would show them the cost if we had to file a case. depending on the amount they owe the fees to file vary. We also added on a $50.oo fee for someone on the legal committee's time. We gave them 15 days to pay or make arrangements, (payments are better then nothing) if they did not respond then we would file. All the cost get added on. In most cases they would pay up, but there's always the few who are stubborn. Once we got a judgement we would go for a seizure of property (not their home or land) but personal stuff 9car,rings, big screen TV's ect, you'll be surprised how quick they would pay up when the Sheriff came knocking to take stuff. Its a drastic step and we only had to use it once. Once word got out that we were very serious on collecting dues more people paid up.

Check your documents and see if all cost can be added on, some don't. Even if you can find a company to do the job their fees are added on. Small claims court works and is the cheapest and easiest way. Hope this helps.

MelissaP1 (Alabama)
Posts: 13,836

Posted:

Small claims doesn't have the bite as a lien or foreclosure. A lien prevents the owner from selling their property and moving away without paying what they owe. A lien and a small claims court ruling are BOTH "judgements". It's just better to have one that sticks the owner to the property.

A lien doesn't always require a lawyer. You can go to the Probate office at your courthouse and fill out the forms. There will be a charge for filling it out but it's also applicable to what the tenant owes. A court appearance typically requires the HOA to be represented by a lawyer while a lien doesn't.

There are some states that may require a lawyer to fill out lien paperwork. However, those funds spent on the lawyer is also attached to the lien. Just don't hold your breath in collecting. A owner can still rent out their property while they have a lien. They just can't sell until they pay up.

Foreclosures do require and attorney. They aren't worth it if the bank is already in process of foreclosure. A HOA foreclosure is basically doing the dirty work for the bank when they foreclose. So the conditions have to be right in order to take that avenue.

Former HOA President

DonnaS (Tennessee)
Posts: 5,671

Posted:

Brian,

A sure fire way to get their attention is to send them a letter, saying that they have 15 days to come up with the missing dues and assessments or the association will begin the lein process against the property. Other than that, you have to spend way too many hours and resources to try and collect the money. Quit being so nice. Even if there are hardship cases involved, this threat may just shake them into at least communicating why thet hav not paid up. It may seem harsch but you are a business and cannot put off paying bills for all of the members of the association.

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