Getting delinquent owners to pay, what are the options in DC?

The firm's staff may have changed, but that doesn't mean their methods have, especially if they were effective. Why not try meeting with them for more information and see if they might be able to work with you?

Sadly, debt collection doesn't happen overnight and isn't cheap (I was treasurer of our board for five years and delinquencies bugged me more than anything else). Some things I learned that may help you:

1 - make sure everyone knows the collection policy - due date, late fees, when accounts get turned over to the attorney, etc. Homeowners should also be told THEY will be responsible for reimbursing the association for all costs related to pursuing the debt (court costs, attorneys fees and the like). For our newsletter, I published an example of how quickly the money adds up - sometimes looking at something in black and white prompts people to pay attention.

2 - your policy should also state that once the account goes to the attorney, an acceleration clause kicks in (if you pay monthly, all fees due for the year immediately become due and payable)

3 - it's ok to negotiate payment plans (stuff happens that no one expects such as job loss). Just be sure the BOARD and no one else decides whether to accept or reject a payment plan, and be strict on compliance. Insist on written verifiable proof of financial distress. Put the payment plan in writing and insist on electronic payments (e.g. automatic deduction). This makes the owner keep track of what's in the account so the payment won't bounce and if it does, you may be able to go after him/her for wire fraud (because that's what this is).

4 - as soon as you find out about a bankruptcy filing, insist that your attorney file a proof of claim with the court. that won't speed up payment, but at least the judge will know about you. In some cases, peole file bankruptcy to get out of paying anyone, so you may have to surprise him or her by showing up at the hearing and plead your case, with details on the homeonwer's failure to pay (especially if thishas happened more than once)

5 - get a lawyer who's really good at debt collection, but make sure he/she follows the law. You don't want issues with violations of the fair debt reporting act or fair debt collections act (federal penalties for violations are not cheap at all).

6 - evaluate your collection strategy every year. You may need to tweak the collection policy or change up a few methods depending on how effective they are. This will also include a hard look at your collection costs. For example, maybe you're waiting too long before the attorney gets the account and the longer you wait, the less likely you'll collect any money.

7. work with your attorney to help decide when to give up. sometimes collection simply won't happen and you'll have to write off that debt so you not throwing away more money. then you can consider filing a 1099-C with the IRS to make the homeowner responsible for paying that amount (it's considered income since you're no longer going to collect). Be sure to talk to your accountant and attorney about the pros and cons of this, if you choose that route.

Some of this may sound gangster, but it's not fair to everyone else to pay and one or two people (or four or five) skip and still get services. Applying the policy consistently and fairly is key. Good luck!

Excellent advice.

Please note that under the Fair Debt Collection Practices Act, the LAWYER is liable for damages for violations of it. The HOA is not. So be sure NEVER to indemnify (pay upon demand) a lawyer for damages that the lawyer incurs for his or her own misconduct when working for your HOA.

I've seen situations in which lawyers were alleged to have violated the Fair Debt Collection Practices Act, were sued by owners, and the lawyers asked the HOA to pay. That's ridiculous.

Specifically a Property Liens. Not a judgement lien.

Just suck it up and encourage buyers to purchase foreclosure. Be glad you are getting rid of a bad owner and hope for fresh blood.

My advice was NOT to lawsuit btw... You ALWAYS lien vs a lawsuit.

Small claims court not a good idea. It only gets you a judgement. It also isn't continuous. Let's say you file a lawsuit in May. The amount that person owed in May is what the lawsuit is. It's now July. Your missing a few months of payments.

Plus lawsuits have to be renewed every few years if left uncollected. What board going to keep up with that after 5 years? Plus the person can sell their house without paying a dime of the judgement. A lien one can not sell till the lien is paid off. A lien keeps a person's foot to the ground. A lawsuit allows them to run free.

Considering you need a social security # for some collection options, it makes it a bit more difficult to collect. The HOA has no business to know your SS# or where you work.