Lien question

Started by JennyJ2 • 10 replies • 1624 views

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JennyJ2 (Oklahoma)
Posts: 1

Posted:

We have recently started an HOA management company in Oklahoma and have our first contract! We have joined CAI and spent a lot of time reading through this and other message boards.

One question that we can't seem to really get a good answer for is how liens are "filed" or "reported." The past management company did this without an attorney and we would like to do the same. We know the specifics may differ from state to state, but we are wondering if anyone could give us the general run down of how it is done, or share a form with us that they use.

Our current thought is that we create a form that includes, name, address, block, lot, etc. along with the unpaid dues amount, lien filing fee and late fees. Then we file this with the county courthouse?

We appreciate any insight you could share. Thanks!

RichardP13 (California)
Posts: 1,767

Posted:

My suggestion is that you do some research on your own, and it might involve the use of an attorney. The process of filing and recording lien will differ from state to state. The last thing you want to is screw it up for your client.

I could do the research for you, but I would have to charge you for the info.

LarryB13 (Arizona)
Posts: 4,099

Posted:

Look up liens recorded by the previous management company and copy what they did. Search by using the name of an HOA that you know recorded a lien. You would record your lien wherever deeds are recorded, which seems to vary quite a bit from one state to another.

You might also see if there is a publisher of legal forms in OKC who can provide pre-printed forms. In most instances, though, a do-it-yourself form has the same legal weight as a pre-printed form.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Jenny

I am not nor do I play a lawyer.

As Richard said, it will vary from state to state.

In SC an Officer of the HOA can take the late dues payer to Magistrates (Small Claims) Court. If the owner does not show up or the judge rules against them and/or they do not pay the amount owed within a court given time (usually 30 days), one can get a default warrant?? from the Magistrates Court and take this to The County Register of Deeds and request a lien be filed. No lawyer is needed.

Also not sure if an authorized representative of the HOA (such as a Management Cimpay) can act on behalf of the HOA BOD in Magistrates Court.

MelissaP1 (Alabama)
Posts: 13,836

Posted:

Liens are kind of an odd thing. You do not need a social security number to file a lien against someone. Matter of fact, the HOA does not collect social security numbers of it's members. Which social security numbers information is used on credit reports. However, that does not mean liens do not get "recorded". They are PUBLIC announced in the newspaper. Plus it is asked if there are liens filed in addition to credit scores. If you lie, it's not a good result.

I guess to explain this better is that your car loan is typically considered a lien. You do not pay the bill, it is then repossessed. Foreclosure is a form of repossession. So your car lien is reported on your credit report as a lien but not as an unpaid bill. It's more of an ongoing promissory note of payment.

Yes, this is clear as mud and I apologize. Yes, liens are recorded to the point that they are another type debt that has to be reported. Multiple debts are reported overall and not just unpaid bills. Even when someone checks your credit it shows up and even can lower your credit score. Credit scores are multifaceted.

Former HOA President

RichardP13 (California)
Posts: 1,767

Posted:

Quote:

Posted By MelissaP1 on 07/31/2014 2:20 PM
Liens are kind of an odd thing. You do not need a social security number to file a lien against someone. Matter of fact, the HOA does not collect social security numbers of it's members. Which social security numbers information is used on credit reports. However, that does not mean liens do not get "recorded". They are PUBLIC announced in the newspaper. Plus it is asked if there are liens filed in addition to credit scores. If you lie, it's not a good result.

I guess to explain this better is that your car loan is typically considered a lien. You do not pay the bill, it is then repossessed. Foreclosure is a form of repossession. So your car lien is reported on your credit report as a lien but not as an unpaid bill. It's more of an ongoing promissory note of payment.

Yes, this is clear as mud and I apologize. Yes, liens are recorded to the point that they are another type debt that has to be reported. Multiple debts are reported overall and not just unpaid bills. Even when someone checks your credit it shows up and even can lower your credit score. Credit scores are multifaceted.

HOA can and have collected Social Security numbers when they are also involved in the rental of a unit, have to run a credit check on the renter/tenant.
I haven't seen a lien in the newspaper.
A lien does not show up on a credit report, they show up when title is ran for the property.
Comparing a HOA lien to a car lien is not an accurate statement.

KimR4 (Florida)
Posts: 33

Posted:

Jenny,
Do you, or your colleagues in this venture, have experience working for, or with, a property management company?

MelissaP1 (Alabama)
Posts: 13,836

Posted:

HOA's are typically NOT involved in the rental of homes. It is the owner's responsibility and they would do the credit checking. The owner would then provide the results to the HOA. A HOA is NOT required to gather or have social security numbers of it's members. You can bet your last dollar my HOA would never ever ever have mine. Nor would I request it from any of the members.

Former HOA President

RichardP13 (California)
Posts: 1,767

Posted:

Quote:

Posted By MelissaP1 on 07/31/2014 9:08 PM
HOA's are typically NOT involved in the rental of homes. It is the owner's responsibility and they would do the credit checking. The owner would then provide the results to the HOA. A HOA is NOT required to gather or have social security numbers of it's members. You can bet your last dollar my HOA would never ever ever have mine. Nor would I request it from any of the members.

But there are some.

RichardP13 (California)
Posts: 1,767

Posted:

Quote:

Posted By RichardP13 on 07/31/2014 9:28 PM

But there are some.

Especially if you have foreclosed on the property and the HOA is renting out to recoup a delinquency.

CyrstalB (Maryland)
Posts: 457

Posted:

I now understand how our previous mgmt. co. messed us up so royally. They must have set up shop in the same way you are. The cart before the horse.

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