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How to find an attorney

Started by JaneC8 • 8 replies • 1384 views

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JaneC8 (Pennsylvania)
Posts: 6
Posted:

We are having issues with our collections process. Having an attorney who is reimbursed directly by the homeowner would be very helpful for us financially. Could anyone tell me how to go about finding an attorney that charges all fees directly to the delinquent homeowner's account.
MarkM31 (Washington)
Posts: 351
Posted:
Quote:
Posted By JaneC8 on 06/03/2016 8:54 AM

We are having issues with our collections process. Having an attorney who is reimbursed directly by the homeowner would be very helpful for us financially. Could anyone tell me how to go about finding an attorney that charges all fees directly to the delinquent homeowner's account.

A collections agency may do this, but take a substantial cut of the money. It is unlikely a real live attorney would bother working for such parsimonious client. In contracting it is called vetting the client.
TimB4 (Tennessee)
Posts: 21,059
Posted:
Our attorney will add their fee onto the collection action. However, the Association has to pay the fee initially.

The best way is to contact various law firms and ask what they charge to handle collection actions.
JaneC8 (Pennsylvania)
Posts: 6
Posted:
Yes we do have an attorney who charges upfront. However on a now closed thread (dated 2012) a couple of individuals stated that they had managed to find attorneys who collect directly from the delinquent homeowner's. I am trying to do the same if anyone can help
MarkM31 (Washington)
Posts: 351
Posted:
How much money are we talking about? And why not use a collectiuons agency?
NpS (Pennsylvania)
Posts: 4,216
Posted:
Quote:
Posted By JaneC8 on 06/03/2016 12:27 PM
Yes we do have an attorney who charges upfront. However on a now closed thread (dated 2012) a couple of individuals stated that they had managed to find attorneys who collect directly from the delinquent homeowner's. I am trying to do the same if anyone can help

In PA.
Know of collection agencies who might buy the debt from you for 50 cents on the dollar. Collection agency might be owned by a lawyer, but that's the only connection I can think of.

Best of luck.

Sikubali jukumu. Read all posts at your own risk.
TimB4 (Tennessee)
Posts: 21,059
Posted:
Keep in mind that the reason many Associations utilize an attorney for collections is the potential possibility of foreclosure on the lien.

I think everyone will agree that an Association should only foreclose to stop the bleeding (that is to say to force a sale to someone who actually will pay assessments on time and not cost the Association additional expenses to collect every year).

Foreclosure laws vary by State and if not complied with an Association could find they spent a lot of money that will not be recovered on a dry run.

JohnC46 (South Carolina)
Posts: 14,265
Posted:


We have about a 5% dues delinquency rate. We have had discussion with a law/collection firm about unpaid dues. They use a multi step process to collect. To the best of my recollection it will go like this:

1. HOA writes a letter reminding the person and asks for back dues or a payment schedule acceptable to the HOA with in 30 days. No threat. Polite letter.

2. HOA writes a letter saying if back dues not paid or a payment schedule reached within 30 days, it will be turned over to a law/collection firm.

3. Law/collection 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.

4. If not paid in 30 days, the Law/collection firm sends a letter saying a lien has been filed 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.

5. 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

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 and the HOA would still have a have a lien on the home..

Personnaly, I am against our association foreclosing. It can get very tricky and costly. Might be a different story in a high rise where who knows what goes in, who lives in the unit, who owns the unit, vacant unit, etc. In private homes (such as ours are) and in townhouses we might well know each other or often face each other, it can be a whole different story.

We have one owner that owes the association $2,400.00 (4 years worth) of dues. Based on fees, interest, lawyer charges, etc. the last bill I saw from the Lawyer to the owner was about $6,200.00

I hope this helps.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
One thing we found to be useful in using a law firm, is the law firm does mention they will be notifying credit rating bureaus if a payment plan is not arranged. This threat caused several of our delinquent owners to make payment arrangements.

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