Late fees 50k+ 3 years late 18% per annum $25 per month increasing $5 per month

First, the amount you charge for late fees should be spelled out in your CCR's.

At first glance and bvased on what you posted, your monthly dues are $7.00 and if you're late, $25.00 is tacked on, plus the interest.

So, how do you get $27K is past due assessments and $80K in late fees?

Late fees and interest are PUNITIVE charges. It is meant to correct the not paying dues.

Now I am not sure if your HOA has a lien on file for this property? If not, why not? This is a way to force the owner to pay up if they sell those properties. They can't sell the home without paying the amount owed on the lien.

It could be at the point of considering foreclosure (after lien filed). However, that is just a "stop the bleeding" option. Your most likely not going to see a dime of the money. It is just to get them out so can get new owners in that WILL pay their dues.

You don't say if the bank is foreclosing or not. They are making their mortgage payments, then a HOA foreclosure may be a consideration. If they are being foreclosed on by the bank, then HOA should just keep lien on file. Otherwise doing the work of the Bank as they get paid first regardless.

Now will say that some charges can be negotiated when lifting a lien or trying to prevent foreclosure. Those fees for late and interest can be tossed out if willing to pay straight dues owed. That often works to negotiate terms to get money owed.

We have had liens for over a year and we have come to the end of our waiting period to foreclose on both units.

The owner has been in the process of selling the units which is why we held up on forclosure.

One of the units is closing next month so I'm just trying to get the paperwork squared away. The other will be forclosed on unless we are made whole when the sale of the unit goes through.

If the sale doesn't happen they will both be foreclosed on.

Is there a cap on late fees?

Christopher, are you in a HOA or condominium association? The Property Codes which apply to HOAs in Texas are very different than those which apply to condominium associations. Also, if you are in the Houston area, there are special carve-outs in the codes regarding certain counties.

Both the 18% past due interest and escalating late payment charge seem excessive. A flat rate of $25.00 per month per account does not. I am not aware of a cap on late payment charges, the escalator clause does give me pause.

If two units/homes are involved you should have two separate accounts regardless of common ownership. Each account should be assessed its own late payment charge.

If you are in a HOA, as SheilaH suggests above you should have long since had in place a documented, distributed, and filed collection process, including a timeline. Creating and filing one was pretty much mandated by the Legislature for HOAs in the 2011 session. If you are in an HOA, do you have such a policy? Is it being followed? Is the Association attorney involved in what is taking place?

Since one unit/home is scheduled to close soon, who prepared the (TREC) Resale Certificate and Resale Certificate package for the use of the title company and the buyer? The Resale Certificate should contain instructions to the title company to withhold funds from the seller's proceeds of the sale for remittance to the Association to meet the outstanding obligations.

Former Texas HOA president here with an exactly similar problem, previously. The main question was asked but not answered: HOA or COA? More specifically are you governed by Chapter 80/81 or 209.

Quick answer: If the properties are foreclosed upon by a bank that, probably, has first right of foreclosure then kiss your fees goodbye. Get on the stick and solve these problems within months not years. Don't be the nice guy manipulated by people who don't pay. Follow your collection policy as hopefully filed according to Texas state law. Have your open meetings that include special sessions which are authorized to pursue legal enforcement actions and make sure to summarize those minutes, without detail, in the official minutes. Get it early, get it fast. Just sayin.

A few days, perhaps a few weeks, and even a few months of missed payments can be due to a job loss or some understandable situation that requires board discretion. If it's more than 6 months of bad payments then you're being smilef****ed. Use state law, offer payment plans longer than the 90 day requirement, use your discretion but don't be taken advantage of.