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Process Server or Certified Mail? Missouri

Started by KarL • 15 replies • 1265 views

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KarL (Missouri)
Posts: 19
Posted:
Hi there,

I sent out invoices. I received a letter from one Home Owner stating that he did not have to pay fees because he has not paid in three years. (All of the homes are responsible for maintaining the common area, which requires maintenance, mowing, & etc.)

The next step will be pre-lien letter.

Our CCR states that US Postal mail is acceptable, but are the laws different in Missouri? Do I need it to be served by a process server of can I just use certified mail?

Is there an example of a pre lien letter somewhere?

Thanks.
TimB4 (Tennessee)
Posts: 21,059
Posted:
Karl,

Lien laws vary by State.

My suggestion, turn the issue over to a collections attorney. They, if like ours, will likely resend all the letters you have done anyway. This is to make sure that they have a solid case when they go to court.
DouglasK1 (Florida)
Posts: 2,046
Posted:
I agree with Tim, if you do this incorrectly you could impact your rights to collect. Let a professional handle it.
Escaped former treasurer and director of a self managed association.
KerryL1 (California)
Posts: 14,550
Posted:
Ditto with Tim & Douglas. But you should on your own be able to check MO law.

What size is your HOA, Karl?
KarL (Missouri)
Posts: 19
Posted:
It is under 50 homes, so it is very small. I think that I could do this myself with some information. I might take a copy of a Pre-lien letter and lien filling to a lawyer and let him look over it. I was just trying to get an idea of what is involved and cost.

Thank you... this board is so helpful.
KarL (Missouri)
Posts: 19
Posted:
I wanted to add that most of the people have not been paying at all, so currently, there is no money in kitty to pay a management company.
KarL (Missouri)
Posts: 19
Posted:
I wanted to add that most of the people have not been paying at all, so currently, there is no money in kitty to pay a management company.
KarL (Missouri)
Posts: 19
Posted:
I wanted to add that most of the people have not been paying at all, so currently, there is no money in kitty to pay a management company.
MelissaP1 (Alabama)
Posts: 13,836
Posted:
Some states require lawyers to do liens. It may not be a Do it yourself. Check that out first. It's usually not that much. Like $400. Some legal services may do it for you. No need to hire a lawyer on retainer. Plus that expense for filing the lien or mailing letters etc... are covered in the lien process. The HOA is to get that money back and part of the money owed in the lien. (Back dues, interest, legal expenses, late fees, and other related expenses can be included).

We also have to run a "public notice" in a local paper for foreclosures. Not sure on liens if they have to be run in a public source. It's a way of showing that contact was attempted publicly.
Former HOA President
GenoS (Florida)
Posts: 4,276
Posted:
If most people have not been paying at all I hope you're thinking about liens on all of those people, too.
DouglasK1 (Florida)
Posts: 2,046
Posted:
Quote:
Posted By GenoS on 08/07/2017 5:10 PM
If most people have not been paying at all I hope you're thinking about liens on all of those people, too.

+1 on this. If you don't treat everybody equally, they can use the "selective enforcement" defense.
Escaped former treasurer and director of a self managed association.
AugustinD
Posts: 5,144
Posted:
Quote:
Posted By KarL on 08/07/2017 7:37 AM
Hi there,

I sent out invoices. I received a letter from one Home Owner stating that he did not have to pay fees because he has not paid in three years. (All of the homes are responsible for maintaining the common area, which requires maintenance, mowing, & etc.)

The next step will be pre-lien letter.

Our CCR states that US Postal mail is acceptable, but are the laws different in Missouri? Do I need it to be served by a process server of can I just use certified mail?

Is there an example of a pre lien letter somewhere?

Thanks.

Hi Karl, what does your HOA's governing documents (Declaration, Bylaws, CC&Rs and similar) say about enforcing the requirement to pay the assessment?

If your governing documents say a lien may be placed on the property, then I see no reason to go the collections attorney route. Nationwide it is common to provide notice to the owner that their failue to pay their assessment will result in a lien being placed within X days, pursuant to the governing documents.

For the first notice, send by email and regular U. S. mail. For the second notice, send by certified mail, return receipt requested. The courts recognize the latter. Where I am, a process server is used only if you are taking the member to court. Putting a lien on a property is not the same as taking her or him to court.

Where I am, HOAs have three options for pursuing payment of members' assessment: Placing a lien (easy to do where I am); using a collections attorney; and using a collections agency. The latter are in order from least expensive to most expensive. Collections attorneys seem to be more effective than collection agencies. If your governing documents allow a lien to be placed, I would start with this for the next 12 months. See if it shakes some money out of people. Remember that a member cannot sell her or his house until the lien has been paid off.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
In SC any BOD Officer can represent the association in filing a lien. The procedure is to take the offender to Magistrates Court (Small Claims court) and use the judgement to obtain the lien. The problem with a lien is it does not have to be settled until the property is sold so the association is out the money until then.

A better idea is use a collections/attorney to go after them including threatening foreclosure. We found letters form the MC did noting. A lien brought a few to the table. A letter from an attorney about foreclosure brought them all to the table.
KarL (Missouri)
Posts: 19
Posted:
Wow. THANKS YOU SO MUCH! The CCR states that the postal mail can be used. Do you have to send a letter to each person on the deed or is one notice per house hold ok. I read somewhere that you should send a regular stamped letter and a certified letter, too, at the same time. If they don't sign for the certified letter and the regular letter does not get reurned, it show that the mail system is functioning properly.

Thanks again.
MelissaP1 (Alabama)
Posts: 13,836
Posted:
I advise to send it to the HOA address directly even if the owner lives somewhere else. You need to show you tried to give proper notice to the address that makes one a HOA member. Now if you have a 2nd address I'd send one there as well. You want to have the rejected HOA address one for court purposes showing it was sent to that address of the HOA. The other one to the owner directly then can be a letter.
Former HOA President
JanetB2 (Colorado)
Posts: 4,219
Posted:
Quote:
Posted By KarL on 08/08/2017 5:01 PM
Wow. THANKS YOU SO MUCH! The CCR states that the postal mail can be used. Do you have to send a letter to each person on the deed or is one notice per house hold ok. I read somewhere that you should send a regular stamped letter and a certified letter, too, at the same time. If they don't sign for the certified letter and the regular letter does not get reurned, it show that the mail system is functioning properly.

Thanks again.

If they refuse to sign for a letter simply keep the returned letter unopened as your proof, if needed in a Court of Law. It is better than regular mail not being returned as your proof. Keep in mind that a postal worker had to knock on a door and request a signature on the "Certifield Return Receipt" letter. That letter will hold a lot more weight in a Court of Law. I would not waste money also sending the same letter via regular mail.

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