Liens

A lien usually includes the amount of back dues owed, the cost of filing the lien, and interest percentage (Defined in documents) on that money owed. Now you may be able to consider hiring a lawyer as a fee to tack on. Late fees can often be a "negotiations" point. Like offer to lower the amount if they pay more quickly. However, each state may vary the allowance of late fees as they are not "dues".

Everybody's times is worth money. If I have to fill out a form, make some calls, write a letter, mail the letter, etc I deserve to get paid. Let us say $120.00 seems fair to me.

Concho,

You need to set the standard quickly - everyone must know their home will be liened if they do not pay their assessment.

Please make sure you are consistent - and, that all costs of filing liens, especially the repetitive costs, are clear. Further, the interest owed should be clear.

Unless this is a solid process, your HOA will get off on tangent and not be effectively managed.

It's a bit harder to report to the credit bureau for a HOA. That is because an HOA has no rights to one's social security #. So to us it to file against credit bureau is different process.

The lien itself is for any expenses incurred for filing the lien. It may not be spelled out in your documents. It's what the legal instrument is for.

BTW: A lawsuit is also lien but one can sell their house/move without paying a dime. It's a much stronger approach to straight out lien as you are.

Concho

I understand from previous posts you have challenges due to the construction of your governing documents.

I think the actions of your Association may not be following the provisions of 209.0062 regarding requisite notice of the availability of payment plan options.

Ideally, your Association should have a very tightly worded and communicated Collections Policy/Process with specific steps to be followed at defined intervals. For example, the assessment becomes past due 30 days after the due date, a past due notice is sent and late payment and past due interest charges are applied (if permissible in your documents). If payment is not received by day 45, some other action takes place, by day 60 some other action takes place, perhaps referral to an attorney for collection, etc. Finally, you have to provide notice the next step is to file a lien on the property. Your policy may, perhaps, call for a hearing with the HO before the lien filing. The foregoing must be very tightly documented, certified mail/return receipt evidence of collection attempts, etc.

All through this, from the first late letter and on every letter or communication following, or, even better first as a statement on every assessment invoice, the Association must under 209 notify the HO a payment plan option is available by contacting the Association. If you have not provided this notification, you must restart the whole process as your collections efforts will not stand up to a challenge. If you ever reach the referral to the attorney stage, the attorneys we have worked with will not even begin to attempt collections if you do not have a documented and communicated Collections Policy and Process in place.

Look carefully through all your documents, all I have seen in Texas describe the outlines of a past due assessment collections process. A Collections Policy and Process would be an outgrowth of those words in your documents.

BilH10 we do offer a payment plan even tho it doesn't state that in our CC&R or Bylaws. We have read both governing doc very carefully and all it address as far late or non payment is: IF the owner or occupant of a Tract shall fail to pay the Annual Charge when due, the Association shall have the right to enforce the Vendor's Lien which is hereby imposed, under the law of the State of Texas, including a foreclosure sale and deficiency decree, subject to the same procedures as in the case of deeds of trust.

We are working to amend our documents, but it takes time and in the mean time this is what we have to work with.

At this point I'm of the opinion that if our current docs... state ...the Association shall have the right to enforce the Vendor's Lien which is hereby imposed, under the law of the State of Texas... We should be able to assess fees for filing and releasing liens.

BillH10

Yes, we understand that we can't put a lien on a homeowner who is under a payment plan.

We are unclear if we can implement a Collections Policy and Process if it takes a amendment to our CC&R's

Concho

I believe your original question had to do with whether or not you could charge collection costs back to the delinquent account.

I cannot find anything in the information you posted which provides definitive language to address your question. Perhaps there is language in your documents, perhaps not.

I suspect you are attempting to minimize the need to invoke advice at an hourly rate from your attorney, which is perfectly understandable. However, my advice at this point is you seek the advice of the attorney.

Royal P's advice seems sound, I have not been involved with lien filings which did not involve an attorney so I am in no position to offer validation or objection to his suggestion. He is correct, the lien exists, it does have to be recorded.

Conch

Not to play lawyer but most association docs establish a lien if dues are not paid meaning by signing for a to agree with the docs, you have already given the association permission to file the lien so the lien only has to be recorded. In SC we not need an attorney to file a lien. Any Officer of the Corporation (BOD) can do so for a $35?? charge via Magistrates (Small Claims) Court.

By now you should realize things vary from state to sate so best you follow your attorney's advice versus look for it on this chat.