ShelleyM (Michigan)
Posts: 1
Posts: 1
Posted:
I have a homeowner who is past due, this is a new association and I'm still learing. I'm looking for information on filing the proper paper work to place a lien against their home. Thanks.
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Past due HOA dues - forms to file a lien
Started by ShelleyM • 13 replies • 23219 views
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JoeW1 (New York)
Posts: 728
Posts: 728
Posted:
ShelleyM - Past due by how long? Have you informed the owner in writing of the past due account status, the obligation and importance of all owners to pay monthly fees, have you created a dialog to understand the reason for the past due account? These are less drastic measures than filing a lien.
KennyD1 (Texas)
Posts: 51
Posts: 51
Posted:
I would suggest hiring a law firm on a case by case process. It's afforable if your assication pays enough in annaul dues. Your association will have to up front the money and make the homeowner pay for the attonrey cost of he or she decides to settle. Matter of fact having an attorney send a warning letter that they will act if payment is not receive usesally put the people on edge to pay.
But check out this site also, they might have something in there for this type of action. http://www.uslegalforms.com/
But check out this site also, they might have something in there for this type of action. http://www.uslegalforms.com/
RogerB (Colorado)
Posts: 5,067
Posts: 5,067
Posted:
Shelly,
First I suggest your HOA establish Rules and Regulations on Delinquent Assessments and distribute them to all members. Attached is an example. Next you can search this board for discussion on liens and examples of Notice of Lien and Release of Lien which I have previously posted.
First I suggest your HOA establish Rules and Regulations on Delinquent Assessments and distribute them to all members. Attached is an example. Next you can search this board for discussion on liens and examples of Notice of Lien and Release of Lien which I have previously posted.
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hoatalk (California)
Posts: 603
Posts: 603
Posted:
You will find the forms Roger refers to here:
http://www.hoatalk.com/Forum/tabid/55/view/topic/forumid/1/postid/19964/Default.aspx
http://www.hoatalk.com/Forum/tabid/55/view/topic/forumid/1/postid/19964/Default.aspx
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BradP (Kansas)
Posts: 2,640
Posts: 2,640
Posted:
Hi Shelley:
If you haven't already I would do what Roger suggested, have set procedures and protocols for deliquent accounts. For example, since our dues are not very much at six months past due we issue them a 30 day notice via certified and first class mail to bring their account current or a lien will be filed. In that six months they still will receive invoices from us.
If they choose not to pay we go ahead with a lien. I don't think it is necessary to involve a lawyer, depends on where you live. All we did was contact our register of deeds, they gave me an example of liens that have been filed, we did our own and submitted.
If you haven't already I would do what Roger suggested, have set procedures and protocols for deliquent accounts. For example, since our dues are not very much at six months past due we issue them a 30 day notice via certified and first class mail to bring their account current or a lien will be filed. In that six months they still will receive invoices from us.
If they choose not to pay we go ahead with a lien. I don't think it is necessary to involve a lawyer, depends on where you live. All we did was contact our register of deeds, they gave me an example of liens that have been filed, we did our own and submitted.
MicheleD (Kentucky)
Posts: 4,491
Posts: 4,491
Posted:
I would ask with state. We do not use lawyers for our lien filings. They are pretty straightforward and about $13 to file and $13 to release at our county clerk's office.
It may be worth your while to have an attorney draft the FIRST one, that way you could use it as a template for any additional that you may have to file later on.
Here is what one of our filings looks like (with personal info XX'd out -- PS: Our subdivision has CC&Rs for 9 sections, and this one template references all of them):
------------------------------------------------------
XXXXXXXXXXXX Residents Association, Inc.
Notice of Assessment Lien
Whereas, pursuant to Article IV, Section 10 (as amended), of the Declaration of Covenants, Conditions and Restrictions for XXXXXXX (a subdivision in Jefferson County, Kentucky), which states
“If any assessment is not paid by January 31, the owner will receive a second notice. If payment has not been received in full by March 1, a late charge of 50 percent of the Residents Association assessments will be assessed. The Residents Association may bring an action at law against the owner personally obligated to pay the assessment, or foreclose a lien against the property, and interest, costs and reasonable attorney fees of such action or foreclosure shall be added to the amount of such assessments. No owner may waive or otherwise escape liability for assessments provided for herein by abandonment of his or her lot”, and
Whereas, Section 1 being recorded in Deed Book 65XX, Page 170, and Section 2 being recorded in Deed Book 65XX, Page 184, and Section 3 being recorded in Deed Book 67XX, Page 501, and Section 4 being recorded in Deed Book 68XX, Page 375, and Section 5 being recorded in Deed Book 70XX, Page 462, and Section 6 being recorded in Deed Book 68XX, Page 474, and Section 7 being recorded in Deed Book 72XX, Page 193, and Section 9 being recorded in Deed Book 71XX, Page 0481, in Jefferson County Clerk’s office; and
Whereas, XXXXXXX Residents Association, Inc., a Kentucky corporation, P.O. Box 58XX, Louisville, KY 40XXX, is authorized to levy a yearly assessment for purposes generally benefiting the Association and said assessment shall constitute a lien on each individual property until paid, and
Whereas, the owner(s) of the property set out below have failed to pay the assessment for the calendar year 2007 within the time required.
OWNER(S): XXXXXXX XXXXXXXX
ADDRESS: 6XXX XXX XXXXXX Court
Louisville, KY 40XXX
AMOUNT DUE: $261.00
Now, therefore, XXXXXXX Residents Association Association, Inc., does hereby give notice that it asserts the lien provided against the above property for the amount of the assessment ($150.00 per year plus a 50 percent late penalty), the costs of recording this lien and all reasonable attorney fees and costs incurred in enforcing said lien.
Dated this 26th day of March, 2007.
XXXXXXXXX Residents Association, Inc.
By: ___________________________________
XXXX XXXXXXXXX
Treasurer, Board of Directors
STATE OF KENTUCKY )
)
COUNTY OF JEFFERSON )
Subscribed, sworn to and acknowledged before me this _____ day of _________________, 2007.
______________________________________
Notary Public, State at Large
My commission expires ___________________________.
Partial payment not sufficient to file for release of lien. For total payoff amount, please contact:
XXXXXXXXX Residents Association, Inc.
Attn: Treasurer
PO Box 58XXX
Louisville, KY 40XXXX
This document prepared by:
_____________________
XXXX XXXXXX
PO Box 58XXX
Louisville, KY 40XXX
XXX-XXX-XXXX
It may be worth your while to have an attorney draft the FIRST one, that way you could use it as a template for any additional that you may have to file later on.
Here is what one of our filings looks like (with personal info XX'd out -- PS: Our subdivision has CC&Rs for 9 sections, and this one template references all of them):
------------------------------------------------------
XXXXXXXXXXXX Residents Association, Inc.
Notice of Assessment Lien
Whereas, pursuant to Article IV, Section 10 (as amended), of the Declaration of Covenants, Conditions and Restrictions for XXXXXXX (a subdivision in Jefferson County, Kentucky), which states
“If any assessment is not paid by January 31, the owner will receive a second notice. If payment has not been received in full by March 1, a late charge of 50 percent of the Residents Association assessments will be assessed. The Residents Association may bring an action at law against the owner personally obligated to pay the assessment, or foreclose a lien against the property, and interest, costs and reasonable attorney fees of such action or foreclosure shall be added to the amount of such assessments. No owner may waive or otherwise escape liability for assessments provided for herein by abandonment of his or her lot”, and
Whereas, Section 1 being recorded in Deed Book 65XX, Page 170, and Section 2 being recorded in Deed Book 65XX, Page 184, and Section 3 being recorded in Deed Book 67XX, Page 501, and Section 4 being recorded in Deed Book 68XX, Page 375, and Section 5 being recorded in Deed Book 70XX, Page 462, and Section 6 being recorded in Deed Book 68XX, Page 474, and Section 7 being recorded in Deed Book 72XX, Page 193, and Section 9 being recorded in Deed Book 71XX, Page 0481, in Jefferson County Clerk’s office; and
Whereas, XXXXXXX Residents Association, Inc., a Kentucky corporation, P.O. Box 58XX, Louisville, KY 40XXX, is authorized to levy a yearly assessment for purposes generally benefiting the Association and said assessment shall constitute a lien on each individual property until paid, and
Whereas, the owner(s) of the property set out below have failed to pay the assessment for the calendar year 2007 within the time required.
OWNER(S): XXXXXXX XXXXXXXX
ADDRESS: 6XXX XXX XXXXXX Court
Louisville, KY 40XXX
AMOUNT DUE: $261.00
Now, therefore, XXXXXXX Residents Association Association, Inc., does hereby give notice that it asserts the lien provided against the above property for the amount of the assessment ($150.00 per year plus a 50 percent late penalty), the costs of recording this lien and all reasonable attorney fees and costs incurred in enforcing said lien.
Dated this 26th day of March, 2007.
XXXXXXXXX Residents Association, Inc.
By: ___________________________________
XXXX XXXXXXXXX
Treasurer, Board of Directors
STATE OF KENTUCKY )
)
COUNTY OF JEFFERSON )
Subscribed, sworn to and acknowledged before me this _____ day of _________________, 2007.
______________________________________
Notary Public, State at Large
My commission expires ___________________________.
Partial payment not sufficient to file for release of lien. For total payoff amount, please contact:
XXXXXXXXX Residents Association, Inc.
Attn: Treasurer
PO Box 58XXX
Louisville, KY 40XXXX
This document prepared by:
_____________________
XXXX XXXXXX
PO Box 58XXX
Louisville, KY 40XXX
XXX-XXX-XXXX
KarL (Missouri)
Posts: 19
Posts: 19
Posted:
Thank you so much. I recently looked up other HOA liens to find examples your example was great! I sent out billing,but anticipate that I will have to file a few liens. I am going to talk with a lawyer, but now I will have him look over my draft. The owner has been paying out of pocket to maintain the common drainage area.
DouglasM6 (Arizona)
Posts: 724
Posts: 724
Posted:
Holy Thread revival Batman!!
Nice find though. I learned from it!
Nice find though. I learned from it!
RichardP13 (California)
Posts: 3,868
Posts: 3,868
Posted:
Quote:
Posted By KarL on 08/03/2017 5:37 PM
Thank you so much. I recently looked up other HOA liens to find examples your example was great! I sent out billing,but anticipate that I will have to file a few liens. I am going to talk with a lawyer, but now I will have him look over my draft. The owner has been paying out of pocket to maintain the common drainage area.
Thank you so much. I recently looked up other HOA liens to find examples your example was great! I sent out billing,but anticipate that I will have to file a few liens. I am going to talk with a lawyer, but now I will have him look over my draft. The owner has been paying out of pocket to maintain the common drainage area.
Check with a lawyer first, or maybe your MC, if you have one. Your state may have specific rules, language or timelines that are different from the attached sample. It was also from 2007, lots change!
RichardP13 (California)
Posts: 3,868
Posts: 3,868
Posted:
Quote:
Posted By DouglasM6 on 08/03/2017 5:52 PM
Holy Thread revival Batman!!
Nice find though. I learned from it!
Holy Thread revival Batman!!
Nice find though. I learned from it!
Don't speak ill of the late Batman. He was once a customer of mine in 1970.
GenoS (Florida)
Posts: 4,276
Posts: 4,276
Posted:
Love Adam West.
I guess lien laws haven't changed much in 10 years, but I know in some states, like mine, liens have their own little universe of rules and technicalities that can surface and bite you in the butt if you don't dot all the i's and cross all the t's. I would not attempt a do-it-yourself lien unless it's in a state where the intricacies are drop-dead simple. If it needed to be done in my HOA and the board voted to do so without the advice of an attorney I think I'd start a revolt.
I guess lien laws haven't changed much in 10 years, but I know in some states, like mine, liens have their own little universe of rules and technicalities that can surface and bite you in the butt if you don't dot all the i's and cross all the t's. I would not attempt a do-it-yourself lien unless it's in a state where the intricacies are drop-dead simple. If it needed to be done in my HOA and the board voted to do so without the advice of an attorney I think I'd start a revolt.
DouglasM6 (Arizona)
Posts: 724
Posts: 724
Posted:
I believe in Az the liens are automatic in place for delinquent dues.
JohnC46 (South Carolina)
Posts: 14,265
Posts: 14,265
Posted:
In SC any Officer of the BOD can go to Small Claims (Magistrates) Court and get a judgement to file a lien. I think there is some ($40??) cost to do so. No lawyer needed.
That said, that is not how we handle it. After a delinquent notification from our MC we turn it over to a lawyer/collector. For $80 they write a "nasty letter" notifying the owner a lien has been filed and foreclosure will begin. It escalates in "legal threats" and all costs are billed to the owner. We have never foreclosed as our dues are only $600 per year and when push comes to shove, we can eat a few of them. We have had a case where it cost the owner over $2,00.00 to get caught up on two years of dues ($1,200) with the rest ($800) being legal charges paid to the lawyer.
That said, that is not how we handle it. After a delinquent notification from our MC we turn it over to a lawyer/collector. For $80 they write a "nasty letter" notifying the owner a lien has been filed and foreclosure will begin. It escalates in "legal threats" and all costs are billed to the owner. We have never foreclosed as our dues are only $600 per year and when push comes to shove, we can eat a few of them. We have had a case where it cost the owner over $2,00.00 to get caught up on two years of dues ($1,200) with the rest ($800) being legal charges paid to the lawyer.
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