Owner Delinquent- owns multiple lots, should we file 1 small claims case or 1 per lot?

Our HOA has an owner who owns 3 homes, 1 of them with another person, we have been forced to file small claims each year in order to get them to pay their assessments. They are 3 months past due and we will be filing cases on April 1st.

In the past the Association has filed only 1 case, with both owners listed on the case ( the 2nd owner is only on 1 of the titles and is married to the owner on the other 2 homes). My question is this:

If technically the 2nd owner is only liable on 1 of the homes- that owner should not be listed on the cases for the other 2 homes correct?

And if the association should need to file a lien after receiving a judgement, would we need to have a separate judgement on each property or is it okay to file 1 case for the remaining 2 homes?

Thank you all for your help.

We are a single family development in Washington state.

Melissa, thanks, it isn't an LLC and we haven't ever fined anyone in our HOA( only 3 years old) so it is only their assessment and late fees at this point. We don't have a lawyer and have in the past just filed small claims. So it is best to just file a lien on their home? Our documents state that Dues are a Personal obligations and Liens on assessed lots, our assumption was it was better to go to small claims( 100% of our cases have been paid in full after judgement) then to file a lien, but perhaps we are incorrect?

Heather

If what you have done in the past has gotten them to pay, then why do it different?

Thanks

As long as your documents allow you to lien or foreclose, you can do that without getting a prior judgement. Liens are much cheaper but can take a long time to ever see money. However, with lawsuits you are never guranteed the money either. A lawsuit does not equal cash in hand. It equals a judgement against the person. IF they continue not to pay after the judgement you will have to do it all over again.

Tim, Thanks You. That may be the way we head, I just thought I would solicit free advice from this group first and see what you all thought Too bad people don't just pay what they are responsible for and make our volunteer jobs a little easier!

Not much of an incentive to pay. If he looses he pays his dues that he already owes? LOL.

You need to hire a lawyer to file a lien. Add the cost of the lawyer, into the lien. Lets say it costs $500. Now he owes dues and $500. Now THAT is an incentive to pay. If he doesn't pay the lien in 2 pay periods bring it to small claims and win the dues plus liens.

You really shouldn't do this yourself. At least the first one. Too many things that could go wrong.

Wait on the need a lawyer. It can/will vary from state to state. In SC if one does not pay off a small claims (we call it Magistrates Court) settlement within the court specified time or does not show up in court, the court will issue a default warrant the other party in the small claim can then take that default warrant and file a lien themselves at the County of Deed Registrars Office.

Such is done all time here without using a lawyer. Someone on the BOD just has to be willing to do the work including the small claims filing, small claims court appearence, register the lien which would be in the HOA's name.

My HOA does it a bit different:

We have tried several ways to collect back dues in that we talk to people, try and arrange payment plans, waive late fees ,etc. but it often gets to a point where they ignore us or do not honor their promises. We felt that by this time we had no "weight" with them thus we needed an alternative.

We talked with a real estate law firm that has a division within it that specializes in owner associations. They use a multi step process to collect. To the best of my recollection it goes like this:

1. After 30 and 60 days late we send polite letters from the HOA. In the next quarterly bill, the HOA sends notice reminding the owner they are 90 days late and asks for back and present dues or a payment schedule acceptable to the HOA within 30 days or we will turn the account over to a law firm for collection. It is now almost 150 days since we have seen a payment. We send it on to the law firm.

2. The law firm sends a letter informing the homeowner that they have received the case and are prepared to file a lien and commence to foreclose unless owed dues are paid or a payment schedule is arranged with the HOA within 30 days. The firm charges the HOA $65.00 for this letter.

The law/collection firm then back off and awaits further notification from the BOD. It is now back in the BOD's lap. The BOD then tries once again to reach an agreement. In several case, this was enough for them to make arrangements to pay. If no arrangement are made we turn it over to the law/collection firm again.

3. Law/collection firm sends a letter saying a lien has been filed (which it has) and foreclosure has commenced. It will now cost the homeowner $495.00 (to the law firm) plus owed dues to the HOA to stop the process. No charge to the HOA.

4. Law/collection firm files some paperwork with the court about foreclosure and notifies the homeowner that foreclosure has begun and it will cost $995.00 (to the law firm) plus back dues to the HOA to stop the process.

5. The next step would be the HOA pays the law firm $400.00 and foreclosure commences. The process is completely stoppable at this point by the HOA, the HOA would still have a lien, and the law/collection firm is owed $995.00

We do not want to be in the real estate business as in we have no wish nor desire to foreclose. I am not saying all should not foreclose but our decision is not to and as such, we have not gone past Step 4.

We have had three foreclosures. Two took about one year to settle and both units were sold but the HOA saw no money from our liens as there was none to be had. Our present one is a result of the owners death and the home is tied up in his estate.

Hope this helps.