Collection process

Started by EbonyJ • 4 replies • 1884 views

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EbonyJ (Tennessee)
Posts: 62

Posted:

Please help, My HOA is a 200 home subdivision. We are spending more on legal fees than we are collecting from deliquent homeowners. Our HOA fees are $150, and it cost $113 to go to General Session court. Any creative ways to collect HOA fees without spending so much money upfront.

TimB4 (Tennessee)
Posts: 21,059

Posted:

Ebony,

The costs of collection (court costs, legal fees, etc.) should be added to the amount you are collecting.

Are your fees $150 per month or per year?

Tim

SteveM9 (Massachusetts)
Posts: 3,699

Posted:

$150 annual fees
$113 legal fees
---------------
$263 total due

So $263 is what you need to ask the court for, not $150. You should never loose money on legal fees, you just charge them to the homeowner. The court will support you.

EbonyJ (Tennessee)
Posts: 62

Posted:

Thanks for the info .. I was wondering if there is a way to put the lien on ask that the court cost be included and not involve an attorney. Once the attorney fee is added it ends up being more than $500 in most cases

TimB4 (Tennessee)
Posts: 21,059

Posted:

Ebony,

That depends on State law. Some States allow liens without an attorney and some do not.
You can ask the County clerk if you can file the paperwork without an attorney and go from there.

The clerk can't give you legal advice but they can inform you of the requirements.

If your going to file a lien without an attorney make sure that you fully understand the law and the wording required and verify that none of it changed when you do each filing.

Tim

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