Delinquent Annual Fees

Late fee added if payment not received or postmarked by due date. Reminder letter sent when 30 days past due. Lien filed after 90 days.

I would think the lien processing fees vary by county - you should call the appropriate agency in your area to find that out.

Your collection policy should also contain language stating the homeowner must reimburse the association for all expenses incurred in pursuing the debt. That would include court costs, attorney fees and the costs in filing and releasing a lien. If you don't have that policy, you need to add it and notify all homeowners accordingly with an effective date (the board should vote on adding the policy so it'll be added to the minutes).

I believe we charge $125 for filing of a lien. If the homeowner gets account up to date, we delay the release of lien until the next annual dues have been paid. This saves a possible release of lien fee only to be followed with another lien.

If you mean assessments when you say "fees," we start the process in November with assessment notice sent, due NLT Dec 31, 30 day grace period, then late fees and interest begins.

The previous Board was pretty lenient and cut deals for many suspect reasons.

I instituted, with Board approval, a process that includes automatic turnover to legal counsel on Aug 1. Once with counsel, we don't discuss any longer.

Counsel attempts to negotiate a payment plan (which includes a startup cost), and then monitors the plan - this includes lien on the property until paid. If the owner refuses the payment plan, then the property is liened and fees and interest continue.

Counsel then follows Florida law through the notification process through foreclosure. We haven't had one actually go to foreclosure, but several owners have gotten very close with payoff on the day of filing.

Can credit bureaus be advised that a resident is delinquent on dues payment without a lien filed?

YES

Uh, Melissa,

Do you think, then, your HOA will be paid with that lien, when the mortgage company/bank forecloses on a property worth $250k, with the mortgage being $350k?

It is a risk you have to take in collections. It's always best to file a lien first and just keep it on than jump to foreclosure. Should have an established Lien/foreclosure policy in place. Ours is 6 month we lien and 1 year we CONSIDER foreclosure. Nothing wrong with keeping lien whether or not you will see the money. Atleast your HOA is adhering to a collections policy.

I have done a foreclosure. There has to be a certain set of criteria before would recommend doing one. It is NOT applicable for every situation. It is a "stop the bleeding" step in the end. The HOA does NOT want to own the home in the end either. That is NOT profitable or good idea financially. Not what people think or want to hear.

Do I recommend foreclosures? Not unless it gets rid of a member that continues NOT to pay intentionally. Otherwise liens/foreclosure are a punitive steps to take not a profitable one. Your just filling in a hole that is owed.

Our community management company handles dues collection but our process is late fee applied after 30 days, send to collection department with our law firm after 90 days, if they don't collect or have a payment plan set up within 90 days, a lien is filed on the property.