High Late Fees

Our condominium board has had an ongoing lawsuit for over seven years.

The result is the condominium association fees have gone from $250
per month to $550 per month plus a new special assessment fee of 386
per month. I am now paying close to 1000 per month,

I sent in a money order that was dated the tenth considered on tim. I am not sure what took
13 days but it was not posted until 23rd.

This month in addition to my thousand dollar payment I was assessed 300 in late fees.
$150 for the special assessment and $150 for the regular assessment. Is this legal?

My building is located in Chicago's Fulton area district. We are the
only building that is selling at a loss due to the lawsuit. Buyers cannot get
Mortgages to buy in our building. Investors buy the condominiums for under
the original asking with cash.

I am a single mother. I don't know that I can afford these assessments and I cannot sell.

Any ideas?

Look up loan sharking.

In reviewing five CCRs' for high rise Condo's in the Chicago area, it appears assessments are due on the 1st and delinquent by the 10th. It also appears they can throw everything but the kitchen sink (maybe even that), such as interest and attorney fees.

If you can prove you submitted your payment on time, then why not contact them to prove it? Sounds like an accounting error. Best to ask why it took so long for them to get the payment and post it?

A HOA is only funded by it's members for it's members. Hence, when someone decides to sue, you ALL on the hook. It's always best to try to resolve the issue prior to going to court or as a group.

They said they submitted on the 10th. Should have been dated. Don't know why a postmark means nothing. It's on the envelope.

Besides it's NOT the submittal time but the PROCESS the accounting uses. When do they gather and post the money received? That is NOT known. If I know that they post everything on the 15th and everything after the 15th is considered "late", then I know my check written on the 10th should NOT be "late".

First, I don't see the envelopes. Everything goes directly to the bank through a lockbox system. Everything is posted the day after the bank receive the check.

Second, let's say they do online banking and tell their bank to pay HOA dues on the 10th. A check has to be proceeded and mailed from the bank. Banks don't cut one check at a time, they do it in batches. I have seen it take ten days.

Then you rely on Pony Express, or the USPS.

Just like the mortgage, assessments are due on the 1st, and delinquent, after the date set forth in your CCRs. In five Condos in the Chicago area, all were delinquent after the 15th. When dealing with a building that has $1000.00 a month dues and probably in debt up to the wazoo, they may be using an attorney or law firm to send out late notice, which could be done in house, but done by the law firm to strike fear in everyone.

I suspect that the special assessments are to pay the legal fees of the lawsuit.
The fact that sales have dropped off is the unintended consequence of legal action.

You may want to gather support and elect directors that will settle vs. fight battles through the courts (of course this is said with zero knowledge of what the suit is about).

The IRS for years required that tax returns mailed had to be POSTMARKED by midnight the day the taxes were due.

Having working for a large mortgage/servicing company, don't know of any policy using the postmark date in making your mortgage payments.

Many management companies, including mine, use a LOCKBOX service provided by their bank. It actually reverses the process in that the money is deposited into the association's bank account before it is posted to their account. If it is deposited on the 1st, I will posted on the 2nd. I might handle 5 checks manually that are mailed directly to my office or dropped off by a resident.

To go back to the issue with the OP, without seeing the statement showing the breakdown of fees, they may be breaking the law. The general rule of thumb, and it came from the mortgage industry, is to charge 10% or $10.00 , whichever is greater. If regular rules were followed, it should have been $55.00 for the assessment and $38.60 for the special assessment. The rest could be legal or collection fees, which should be a separate line item, not lumped together.

You can ask about your account but not others. Reason being would you want someone asking about yours and it given to them? I would just concentrate on your situation. Your issue is the late fee is too high and you paid on time. It sounds like a possible mistake or bad practice. If you have the proof you paid on time, then find out the process of how they do their accounting.

Sounds like it may be time to rent the place out and find another place to live till you can sell. The assessments then become tax deductible if used as rental property. Right now they are not. Which may be an option for you till you can find a way to sell out.