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AaronS4 (California)
Posts: 12
Posted:
We have one of unit owners who didn't pay 21 months of HOA fees.
She owns two units with someone else's name.
She's been paying current HOA fees on time since last November.
The problem we are having now is that how to collect old HOA fees.
Former HOA board members put a lien on those units last December.
When I became a president for this year she came to me and told me that she wants to pay off old dues.
However, the total amount was very different from what we expected.
The total dues on the lien was about $15000. (HOA fees + legal fees + late charges)
She didn't want to pay late charges and deduct all the money she spent on repairing her units.
(HOA didn't fix her problems since she wasn't paying HOA at that time.)
The check she brought to us was only $7300.
Now she's asking me to take that money and remove the lien.
But the former president and some other people don't want to take it since it might lead other people to do the same thing.

My question is if we go to court, are we able to collect the full amount + legal fees?

If you have to make a decision, What would you do?
TimB4 (Tennessee)
Posts: 21,059
Posted:
Quote:
Posted By AaronS4 on 02/25/2013 1:08 PM

If you have to make a decision, What would you do?

I'd push for the Board to agree to waive all unpaid late charges providing the member pays all past due assessments, rest of assessments for current year and any legal expenses/court costs incurred during the collection process.
BB7 (Missouri)
Posts: 23
Posted:
I noticed in this post the comment "The HOA didn't fix her problems because she wasn't paying" can the HOA do this if there is nothing in by-laws or covenants ?
TimB4 (Tennessee)
Posts: 21,059
Posted:
BB

Too many unknowns to even look at that.

What were the problems?
What caused the problems?
Was the Association liable for repairs?
Did the Association actually fix other units with similar problems?
Were the problems not fixed in her units due to lack of access, scheduling or just for her being delinquent?

There are just too many unknowns.

TimB4 (Tennessee)
Posts: 21,059
Posted:
Oh, I should specify that good business practice shouldn't allow anyone to deduct expenses from what they owe.
The individual should pay what the owe and a check should be made to pay any reimbursable expenses (that have receipts of course).
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Aaron

Like Tim I would need further clarification on "problems/repairs and a breakdown of dues owed, late payments, fees, etc.

It does sound like she is willing to make amends as in up to date on dues, willing to settle overdue dues so at least keep working with her rather then say all or nothing.

LarryB13 (Arizona)
Posts: 4,099
Posted:
Quote:
Posted By AaronS4 on 02/25/2013 1:08 PM

We have one of unit owners who didn't pay 21 months of HOA fees.
She owns two units with someone else's name.
Former HOA board members put a lien on those units last December.

Why did the board not proceed against the legal owner(s) of those two units? How would you prove in court that this person is responsible if the units are in someone else's name?

My math says that the assessments on these two units were not paid between February, 2011 and October, 2012, yet your board waited until December, 2012, to file a lien. Why?

If she purchased the units in late 2012 before your association filed the liens, the title company would have had no notice that money was owed.

Quote:
Posted By AaronS4 on 02/25/2013 1:08 PM

The problem we are having now is that how to collect old HOA fees.
When I became a president for this year she came to me and told me that she wants to pay off old dues.
However, the total amount was very different from what we expected.
The total dues on the lien was about $15000. (HOA fees + legal fees + late charges)
The check she brought to us was only $7300.
Now she's asking me to take that money and remove the lien.

I am curious about those "legal fees." How much and what were they for?

Quote:
Posted By AaronS4 on 02/25/2013 1:08 PM

But the former president and some other people don't want to take it since it might lead other people to do the same thing.

Between you, the former president, and these other people, who is president? Thank them for their concern but do not hesitate to remind them that they allowed this mess to fester and that now is the proper time for them to sit down and shut up.

Quote:
Posted By AaronS4 on 02/25/2013 1:08 PM

She didn't want to pay late charges and deduct all the money she spent on repairing her units.
(HOA didn't fix her problems since she wasn't paying HOA at that time.)

Were the items she repaired items that the association is required to maintain or repair? Is there a clause in your declaration that says the association may refuse repairs if the owner is not paying or did your board just decide on their own that they were going to teach her a lesson? If there is no clause in the declaration you will be in deep doodoo going to court.

Quote:
Posted By AaronS4 on 02/25/2013 1:08 PM

My question is if we go to court, are we able to collect the full amount + legal fees?

If you have to make a decision, What would you do?

I would take the money and call it quits. She is holding more cards than you. If you went to court you would have to explain why you are suing a person who did not own the units. You also have the issue of refusing repairs plus questions about all the other costs your association has rolled into this.
SteveM9 (Massachusetts)
Posts: 3,699
Posted:
Quote:

She owns two units with someone else's name.


What does this mean? Im confused.
AaronS4 (California)
Posts: 12
Posted:
Hi BB7,

Our CC&R doesn't specify about this kind of issue.

We have bylaws but its a copy of CC&R and it was never revised since it was written in 1980.

thank you.
AaronS4 (California)
Posts: 12
Posted:
Hi Tim,

thanks for your input.

That's what I really want to do.

To be clear about those two units.

It was a water damage according to that unit owner.

She told me that there was a water leak from the wall so she asked HOA to repair it but HOA refused to fix it.

(Former HOA president and this unit owner are long standing enemies each other. They don't even talk to each other. So I really don't know what really had happened. But this is what I know,
According to Former HOA: We didn't fix it since she wasn't paying HOA and other special assessments. And that total amount on that receipt is not valid since she did the job with someone she knew
According to the unit owner: the wall was wet and when she reported this issue, HOA didn't respond so she had to call someone to fix. And she hired someone she knew so she could have a better price.)

And yes, HOA would fix this kind of issue if she paid her dues on time.
AaronS4 (California)
Posts: 12
Posted:
Hi John,

I don't have a paper with me so I can't give the exact amount and break downs but here's what I remember.

1) 21 months dues = $11088
2) special assessment for fixing water tank = $200 * 2
3) special assessment for something (I can't recall) = $300 * 2
4) sheriff fee = $75 * 2
5) attorney fee = $300
6) legal paper fees (via WeThePeople ParaLegal) = $150
7) late charges = about $1500

and some other stuff I just can't remember now. The total was about $15000.

thank you.
AaronS4 (California)
Posts: 12
Posted:
Hi Larry,

I asked most of this to the former president.

She told me that since the unit owner has been changed three or four times during last two years it was hard to send a letter to the actual owner.

I'd like to make this as simple as possible and I tried to go back and forth with the former president and the unit owner for last three months but nothing happened.

They both are so stubborn and accuse others.

I was in between and I had to visit both of them at least two or three times a week(since they don't talk to each other) and it's been more than two months and I'm fed up.

They both wanted to go to court but the unit owner came to me and told me that I'm the one who needs to make a call since I'm the president now.

Here's my dilemma.

If I take her money then other unit owners might do the same thing.
If I go to court then we might get less than what she's offering now.

thank you.
AaronS4 (California)
Posts: 12
Posted:
Hi Steve,

She is the actual owner of two units.

However, on the paper, two units are under either her relatives or friend's name.

I think it's under her daughter's name now.

thank you.
SteveM9 (Massachusetts)
Posts: 3,699
Posted:
Quote:
She is the actual owner of two units. However, on the paper, two units are under either her relatives or friend's name.


You need to check the registry of deeds and see who owns it, legally. She either owns it or she doesn't. You need to go after the "real" owner who is on the deed, not someone who says they own it.
SteveM9 (Massachusetts)
Posts: 3,699
Posted:
Quote:

1) 21 months dues = $11088
2) special assessment for fixing water tank = $200 * 2
3) special assessment for something (I can't recall) = $300 * 2
4) sheriff fee = $75 * 2
5) attorney fee = $300
6) legal paper fees (via WeThePeople ParaLegal) = $150
7) late charges = about $1500


If it was me, I'd make a deal to waive the late charges if she can pay in 60 days, but everything else stands.
TimB4 (Tennessee)
Posts: 21,059
Posted:
I agree with Steve.
AaronS4 (California)
Posts: 12
Posted:
thank you Steve!
AaronS4 (California)
Posts: 12
Posted:
thank you Tim!
LarryB13 (Arizona)
Posts: 4,099
Posted:
Quote:
Posted By AaronS4 on 02/26/2013 10:02 AM
It was a water damage according to that unit owner. She told me that there was a water leak from the wall so she asked HOA to repair it but HOA refused to fix it.

We didn't fix it since she wasn't paying HOA and other special assessments. And that total amount on that receipt is not valid since she did the job with someone she knew

According to the unit owner: the wall was wet and when she reported this issue, HOA didn't respond so she had to call someone to fix. And she hired someone she knew so she could have a better price.

And yes, HOA would fix this kind of issue if she paid her dues on time.

The obligations of the association are not usually predicated upon whether a particular owner has paid their assessment or whether a president likes or dislikes a unit owner. By refusing to repair a problem that seems to fall under the association's responsibilities, you gave up all rights to bitch about who the unit owner hired and how much they had to pay. Your association had the opportunity to do the right thing and deliberately chose not to do it because of a personal vendetta between an owner and an officer of the association.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Quote:
Posted By LarryB13 on 02/26/2013 3:57 PM
Posted By AaronS4 on 02/26/2013 10:02 AM
It was a water damage according to that unit owner. She told me that there was a water leak from the wall so she asked HOA to repair it but HOA refused to fix it.

We didn't fix it since she wasn't paying HOA and other special assessments. And that total amount on that receipt is not valid since she did the job with someone she knew

According to the unit owner: the wall was wet and when she reported this issue, HOA didn't respond so she had to call someone to fix. And she hired someone she knew so she could have a better price.

And yes, HOA would fix this kind of issue if she paid her dues on time.


The obligations of the association are not usually predicated upon whether a particular owner has paid their assessment or whether a president likes or dislikes a unit owner. By refusing to repair a problem that seems to fall under the association's responsibilities, you gave up all rights to bitch about who the unit owner hired and how much they had to pay. Your association had the opportunity to do the right thing and deliberately chose not to do it because of a personal vendetta between an owner and an officer of the association.

I agree.
AaronS4 (California)
Posts: 12
Posted:
thank you Larry.

But everything happened before I became a president.

I'm wondering what would be the best solution for our HOA now.

JohnB26 (South Carolina)
Posts: 1,569
Posted:
suck it up and settle

proceed from this point as a BUSINESS, not as a social club

late fee IMMEDIATELY when dues late by even 1 day

notice by certified mail

demand notice by certified mail when late 30 days

lien when late by 45-60 days

collection ATTORNEY when late by 90 days

VOILA: no more issues

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