Ask for Help on HOA fee payment issues

Started by PeiH • 15 replies • 1132 views

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PeiH (Virginia)
Posts: 3

Posted:

Hi all, I come here to ask help on some HOA fee payment issues. For some reason, my HOA kept my previous address as mailing address, which I only found out recently. I had thought my mailing address is of course my house address since I purchased the house and moved in. Our HOA fee is due at the first month every year. so HOA sent the bill to my old address and of course I total missed the bill without even knowing it. Until recently I suddenly realized that I have not received the HOA bill for quite a while, so tried to check my online account and found out the online account was blocked and my bill has been sent to the debt collector. Since the debt collector also has my old address, I did not receive any written notice either, and have never received a phone call either. When I tried to contact the debt collector, they first told me they needed to figure out how much I should pay, then sent me a big bill to charge me attorney fees and court fee, even though I have received any court notice for court appearance. Now my question is "Am I responsible for the attorney fees and court fee?" The original bill is $114, now they want to charge me $411. Is it possible for me to explain the situation to the board of HOA and ask them to waive the additional charge?

PeiH (Virginia)
Posts: 3

Posted:

Quote:

Posted By PeiH on 01/23/2018 3:20 PM
Hi all, I come here to ask help on some HOA fee payment issues. For some reason, my HOA kept my previous address as mailing address, which I only found out recently. I had thought my mailing address is of course my house address since I purchased the house and moved in. Our HOA fee is due at the first month every year. so HOA sent the bill to my old address and of course I total missed the bill without even knowing it. Until recently I suddenly realized that I have not received the HOA bill for quite a while, so tried to check my online account and found out the online account was blocked and my bill has been sent to the debt collector. Since the debt collector also has my old address, I did not receive any written notice either, and have never received a phone call either. When I tried to contact the debt collector, they first told me they needed to figure out how much I should pay, then sent me a big bill to charge me attorney fees and court fee, even though I have NOT received any court notice for court appearance. Now my question is "Am I responsible for the attorney fees and court fee?" The original bill is $114, now they want to charge me $411. Is it possible for me to explain the situation to the board of HOA and ask them to waive the additional charge?

MelissaP1 (Alabama)
Posts: 13,836

Posted:

Welcome to the forum. My opinion and practice has always been to first and foremost ALWAYS send correspondence to the HOA address. That is my rule of thumb. Any other address not in the HOA notification is a courtesy or put in the HOA's records/accountant office to use as the Prime.

Now it may be the issue is on BOTH sides here. Not sure how the original paperwork was given or what was filled out with the HOA. Our HOA we never sent out Bills because it's in our documents and posted at the entrance when to pay. It's not like you moved into our HOA and NOT know your in one. (HOA=Fees). So don't know how you would contact your HOA to verify what information they have on you.

I would give them a call and let them know ASAP they have the WRONG address. Plus you may be able to negotiate some of those charges off the money you owe. Such as any interest or late fees. Be willing to compromise or set up a payment plan.

Sorry it happened but make sure your information is correct from now on.

Former HOA President

KerryL1 (California)
Posts: 14,550

Posted:

Do try to explain the problem to the Board. See if they'll let you meet with them. Our Board has waived fees that our HOA hasn't already paid in these cases. Be very polite.

TimB4 (Tennessee)
Posts: 21,061

Posted:

Pei,

You can certainly contact the Board and explain the situation.

However, only expect the possibility of Association late charges to be waived.
The attorney costs, legal fees and court costs are hard costs to the Association and I doubt that they will waive those. My Association actually has a policy that we will not waive those charges once incurred.

Now, if you have proof that you notified the Board of your change in address, that might add some fuel to your side. If you failed to inform the Association of your change of address, the Association must send the notices to the last address they had on file (which it appears that they did).

Without the potential of having costs of collection waived, you may simply want to pay the bill and consider it a lesson learned in notifying everyone of change in addresses.

RichardP13 (California)
Posts: 3,868

Posted:

Sounds like the association made the error and didn't change the address on file to the house they purchased IN the association.

PeiH (Virginia)
Posts: 3

Posted:

Thank you all for the suggestions. I'll talk to the board to explain the situation. Don't know whether they will consider my case and waive the fees, but at least it's worth a try. I also sent a letter to the debt collector and request detailed explanation about those fees and expenses. Don't you think they should let me know what exactly those fees are? What I don't understand is, I did not receive written notice from the court, and of course did not go to the court either. How could they charge me a court fee?! I should at least be notified if they sued me, right? From the bill they emailed me, the bill is called "non-judgement". I am just speechless. Thank you all again!

MelissaP1 (Alabama)
Posts: 13,836

Posted:

The court fee could be a variety of charge not necessarily a lawsuit. HOA's rarely sue. They lien or foreclose. They could have placed a lien on your property. Which that could be the court related charge. You want to find out about that ASAP. There may be other processing fees they had to pay out in regards to collection.

I would negotiate the best you can. Late fees/interest/fines (if any) should be negotiable. Other than that dues and collection expenses you most likely owe. Most HOA's will compromise on some of those "extra" expenses if willing to pay the base amount owed.

Former HOA President

KellyM3 (North Carolina)
Posts: 2,239

Posted:

This happens a lot w/ HOAs and YES, you can explain to your board the circumstances but expect to cover any cash costs the HOA incurred in "chasing you."

That said and from my perspective and opinion:

1. Expect to pay all your HOA dues and make them current
2. Expect to pay any cash fees the HOA paid to properly handle your collections account (legal, court, etc).
3. DO REQUEST a waiver of late fees or penalties not linked to a cash expense
4. DO NOT EXPECT to "forget" again and receive any flexibility (and you may not get flexibility w/ this).

If the HOA followed protocol, it is your duty to maintain your account. If you've had a solid payment history in the past, a reasonable board will work w/ you but, if they waive court costs, then they've made your neighbors subsidize your problem. That's not fair.

DouglasM6 (Arizona)
Posts: 724

Posted:

The court fees have me suspicious. "non-judgement"?? Is that because they tried to sue you and the courts decided they had not follow the correct procedure? If that is the case, I would not pay those fees. Yes, it means the neighbors are all paying it, but that would not be your fault, if the courts ruled that way. However, not knowing you had a payment due IS your fault.

Start by talking to the BOD.

Good luck with all of this.

TimB4 (Tennessee)
Posts: 21,061

Posted:

Doug,

I suspect that the court fees were for filing the case and recording the lien.
The letter stating non-judgement is likely because the court hasn't heard the case yet or hasn't ruled.

The OP should also check the status of the case through court records.
This may be available online (it is in Fairfax County).

DouglasM6 (Arizona)
Posts: 724

Posted:

Thank you Tim.

If that is the case, I would wait till the judge hears the case before paying the court fees.

TimB4 (Tennessee)
Posts: 21,061

Posted:

I don't think I would.

The defense for not paying that has been provided is "nobody sent me a bill"

Based on the wording, I'm not sure if:
A) the OP purchased and moved in
B) the OP purchased, renovated and moved in
C) the OP purchased, tried to rent, couldn't and then moved in.

I am not sure because the OP said the HOA sent to her previous address for the first year.
Had the owner submitted a change of address to the P.O., that mail would have been forwarded.
Had the owner informed the Association that they are the new owners and here is my contact info, this wouldn't be an issue.

It is also unclear as to how long it was without a payment.
From what I've heard, most Associations wait 90 days before sending accounts to collections.
In those 90 days (if it was 90 days), were there newsletters identifying the new payment?

Bottom line is a debt was owed and not paid.
That will be the argument of the Association in court.

I'm not sure a defense of "nobody sent me a bill" will sway the court.

MelissaP1 (Alabama)
Posts: 13,836

Posted:

I will say Tim that in cases of house foreclosure I've heard owners state "I never got a bill" when they live in another location. The court typically doesn't take this as an excuse IF the HOA is sending notifications to the owner HOA address. That is why I advocate strongly that the HOA sends notifications to the HOA address AND KNOWN outside address. The court will look for those certified letters to have that address on them. Especially UNOPENED notices.

Typically one should have a renter in their home or they have left it abandoned. If they have a renter, then expectations are that they would forward correspondence to the owner. If no one lives there, the court may consider it abandoned/neglected. Something that goes toward the HOA's favor in winning.

There is also the PUBLIC notification that is part of the lien/foreclosure process to factor in. It has to be publicly notified in a Newspaper or other public resource for about a 3 month period of time. So even IF you do not get notification of a lien/foreclosure, the PUBLIC is.

I still think they may be able to say they did not get a bill BUT still have money to owe in the end. Not getting out of it IF that is the goal.

Former HOA President

TimB4 (Tennessee)
Posts: 21,061

Posted:

Melissa,

We all know that laws vary by State.
VA law requires notices to be sent to the last known address in foreclosure issues.

Currently, the OP is not discussing foreclosures.
Simply late payments that went into collections.

TimB4 (Tennessee)
Posts: 21,061

Posted:

It should also be noted that Virginia has non-judicial foreclosures for HOA/COA.
Hence, it's possible that a foreclosure process in Virginia never sees the inside of a court room.

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