Has anyone every notified a lender of delinquent dues?

I was wondering if anyone has ever notifed a lender of delinquent dues and if so did anything transpire from it?

I'm asking because we have one homeowner who is habitually late. The language in their loan documents read as follows: "Borrower promises to pay all dues and assessments imposed pursuant to the legal instruments creating and governing the PUD."

Karen,

Never contact a bank or a mortgage company. You are, as Mike said treading on rocky ground if you do. It's like kids fighting "I'm going to tell Mom." Check your states credit reporting laws, you may be violating these laws also, if you report to a bank or anyone else.

Check your doc's. We have a provision that says we can accelerate the maintenance fees for up to one year if the homeowner is habitually late. When do we call it a habit? after 3 quarterly payments are late in succession. I have instituted this with two homeowners in the past year. One had his attorney call me. I sent him the homeowners payment history and told him to read our doc's.

Nancy & Mike,

Thank you both for your comments. I agree with you both I just wanted to see if anyone had done this.

This person is habitually late, have bounced checks and always have and excuse. This person has also verbally threatened me. We have inceased the late fees - pretty stiff too. However, they ran to the assistant manager and he's very mellow and said we'd work with them after they promised to pay by the end of the month. Well of course the end of the month has come and gone. Then when they did pay was in the middle of the month when the current month was due but did not pay that month! They also did not pay the late fees as the assistant manager indicated they would accrue and be due and payable by end of the year. I told the assisant manager - he could deal with them and collect! It's just frustrating!

Karen,

If the assistant manager is not on the BOD and is an employee of the HOA or of a management company he would be seeing the sole of my foot. Why do you accept any payment when the late fees are not paid. It's a good credit policy to apply all monies to the first owed. Late fees, then dues. If a homeowner does not pay the late fees with his dues we do not accept the check.

I have accelerate the dues on a few homeowners. They were consistently late and one of them even went so far as to have two liens placed by the HOA in the past two years. She sent me a letter of objection a few weeks ago. She berated the whole board and then she singled me out as the Treasurer. She said that even though she owed the money, and was late all the time, she eventually paid. Go figure!

You have a fiduciary duty to the homeowners to collect this money. If that homeowner does not pay then everyone else has to make up the difference. It's not fair to the homeowner who pays on time.

Stick with it and get firm!!

Nancy,

This "assistant manager" is part of our BOD - we are a very a small PUD with only 12 houses. I would however, like to give him the sole of my foot, as I've reminded him time and time again that everyone else pays so why shouldn't this homeowner! I've not waived anyone elses late fees ever!

I was in collection for 12-15 years and I've heard every excuse known to man so I'm not very lenient. You can be assured that I will have some not so kind words regarding delinqencies at our next meeting!

Thanks for you input!

KarenT,
Play cool Karen, never go to a Board meeting with fire in your eyes, counter productive.
I would like to know who the manager is with twelve units? Seems to me you could fire the manager and assistant manager, and let each board member share specific responsibilities of running the place. In fact, I'm not sure the Board couldn't appoint every owner as a board officer with specific duties. I already know who you should select as the,"supervisor of all fees and collection."

Forgive my attempt at humor, but some of what I said makes sense.