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When do you have an attorney handle all communication with a homeowner?

Started by MichaelT21 • 16 replies • 482 views

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MichaelT21 (Arkansas)
Posts: 501
Posted:
At what point do you have an attorney handle all communication with a homeowner?

We have a homeowner whom we are discussing as a Board at our next meeting. I'm trying to decide if my recommendation that we have an attorney handle everything with this homeowner. It might cost us though since we can't bill him for attorney fees except as they relate to foreclosure on his house (he isn't paying dues).

Have you ever had an attorney handle 100% of dealing with a homeowner? What kind of circumstances led to that decision?
MelissaP1 (Alabama)
Posts: 13,836
Posted:
No and we did a foreclosure. Though let the lawyer handle the foreclosure process as that is what we hired them for. We did not hire a lawyer just to deal with a difficult homeowner. We've had fights at our meetings with fist thrown. That becomes a law problem NOT an HOA one.

My response to anyone who has ever threatened to sue us is "See you in court once the paperwork drops". Otherwise threatening to sue is just an attempt of someone having power over you. If your not doing anything wrong, then where is the power? Plus you can always counter sue them. Does not require a lawyer and can be for any expenses the HOA has incurred in the matter.
Former HOA President
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Quote:
Posted By MichaelT21 on 06/04/2022 11:16 AM
At what point do you have an attorney handle all communication with a homeowner?

We have a homeowner whom we are discussing as a Board at our next meeting. I'm trying to decide if my recommendation that we have an attorney handle everything with this homeowner. It might cost us though since we can't bill him for attorney fees except as they relate to foreclosure on his house (he isn't paying dues).

Have you ever had an attorney handle 100% of dealing with a homeowner? What kind of circumstances led to that decision?

Are you discussing/considering foreclosure? If so, you need legal advice before proceeding and then all communication should be froim your lawyer after that point.
MichaelT21 (Arkansas)
Posts: 501
Posted:
I don't worry about fists being thrown at meetings. You can survive punches.

I do worry about shots being fired.
MaxB4
Posts: 3,513
Posted:
Quote:
Posted By MichaelT21 on 06/04/2022 11:16 AM
At what point do you have an attorney handle all communication with a homeowner?

We have a homeowner whom we are discussing as a Board at our next meeting. I'm trying to decide if my recommendation that we have an attorney handle everything with this homeowner. It might cost us though since we can't bill him for attorney fees except as they relate to foreclosure on his house (he isn't paying dues).

Have you ever had an attorney handle 100% of dealing with a homeowner? What kind of circumstances led to that decision?

Before considering going to an attorney, work on your communication skills with homeowners.
KerryL1 (California)
Posts: 14,550
Posted:
At some point with delinquent dues, our board votes to turn collection attempts over to a firm of collection attorneys. Then, there is no further communication between the HOA/board on that topic with that owner.
MichaelT21 (Arkansas)
Posts: 501
Posted:
Quote:
Posted By KerryL1 on 06/04/2022 11:46 AM
At some point with delinquent dues, our board votes to turn collection attempts over to a firm of collection attorneys. Then, there is no further communication between the HOA/board on that topic with that owner.

Sadly, we have more topics that just unpaid dues with that homeowner.
LoriM15 (Florida)
Posts: 1,009
Posted:
Quote:
Posted By MichaelT21 on 06/04/2022 11:48 AM
Posted By KerryL1 on 06/04/2022 11:46 AM
At some point with delinquent dues, our board votes to turn collection attempts over to a firm of collection attorneys. Then, there is no further communication between the HOA/board on that topic with that owner.


Sadly, we have more topics that just unpaid dues with that homeowner.

We’re in the same situation. The lien/foreclosure is being handled by our collections attorney. But the same homeowner keeps racking up violations because he either doesn’t maintain his property or makes changes without submitting ARC applications. We are trying not to involve the attorney in those but his attorney keeps sending us letters. If you follow the process laid out in your documents you should be able handle the issues without an attorney. But if it gets nasty or out of control I think it is perfectly appropriate to get attorney advice and assistance. The board is all volunteer. Nobody should expect you to be a legal expert.

We had a board president who ran to the attorney for everything. We had huge legal bills that were unnecessary. But sometimes there are cases that are too complicated or difficult for volunteers.

I also agree that nothing annoys me more than people who threaten to sue. Almost always an empty threat and a bullying tactic. It’s so expensive that the majority of people don’t pursue. I always say to them you have every right to bring a suit if you think you need to and we’ll deal with it. Anyone can try sue for anything but most don’t.
KerryL1 (California)
Posts: 14,550
Posted:
Ah, you might have mentioned that at the outset, Michael. So, he isn't paying fines for violating your covenants or rules? Or he isn't correcting those violations within xx days?
JohnT38 (South Carolina)
Posts: 1,631
Posted:
Quote:
Posted By LoriM15 on 06/04/2022 12:08 PM
Posted By MichaelT21 on 06/04/2022 11:48 AM
Posted By KerryL1 on 06/04/2022 11:46 AM
At some point with delinquent dues, our board votes to turn collection attempts over to a firm of collection attorneys. Then, there is no further communication between the HOA/board on that topic with that owner.


Sadly, we have more topics that just unpaid dues with that homeowner.


We’re in the same situation. The lien/foreclosure is being handled by our collections attorney. But the same homeowner keeps racking up violations because he either doesn’t maintain his property or makes changes without submitting ARC applications. We are trying not to involve the attorney in those but his attorney keeps sending us letters. If you follow the process laid out in your documents you should be able handle the issues without an attorney. But if it gets nasty or out of control I think it is perfectly appropriate to get attorney advice and assistance. The board is all volunteer. Nobody should expect you to be a legal expert.

We had a board president who ran to the attorney for everything. We had huge legal bills that were unnecessary. But sometimes there are cases that are too complicated or difficult for volunteers.

I also agree that nothing annoys me more than people who threaten to sue. Almost always an empty threat and a bullying tactic. It’s so expensive that the majority of people don’t pursue. I always say to them you have every right to bring a suit if you think you need to and we’ll deal with it. Anyone can try sue for anything but most don’t.

I'm confused. The homeowner has hired a lawyer and you are communicating with this lawyer directly without using your own lawyer to respond? Our position was once a person lawyered up all direct communications ceased with the Board.
ThadC2 (Florida)
Posts: 820
Posted:
attourneys' are expensive, try to avoid them if at all possible.
KellyM3 (North Carolina)
Posts: 2,239
Posted:
Quote:
Posted By MichaelT21 on 06/04/2022 11:16 AM
At what point do you have an attorney handle all communication with a homeowner?

We have a homeowner whom we are discussing as a Board at our next meeting. I'm trying to decide if my recommendation that we have an attorney handle everything with this homeowner. It might cost us though since we can't bill him for attorney fees except as they relate to foreclosure on his house (he isn't paying dues).

Have you ever had an attorney handle 100% of dealing with a homeowner? What kind of circumstances led to that decision?

Michael,

If the issue surrounds a pending foreclosure, as opposed to delinquency or other matters, then 100% of the communication should be between the homeowner and the attorney as the goal is to collect. Anything said by the board or a director can muddy the process.

All other process problems should be handled between the PM and the owner unless you're self-managed.
KellyM3 (North Carolina)
Posts: 2,239
Posted:

I'm confused. The homeowner has hired a lawyer and you are communicating with this lawyer directly without using your own lawyer to respond? Our position was once a person lawyered up all direct communications ceased with the Board.

Missed this before typing...but this is correct procedure to me.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Quote:
Posted By KellyM3 on 06/05/2022 7:28 AM

I'm confused. The homeowner has hired a lawyer and you are communicating with this lawyer directly without using your own lawyer to respond? Our position was once a person lawyered up all direct communications ceased with the Board.


Missed this before typing...but this is correct procedure to me.

I agree. When they lawyer up, you do the same.

Once in a while we have an owner threaten legal action. Our reply is since you have threatened legal action, you will no longer be hearing from the BOD on this issue as we will be turning this issue over to our attorney. Most hastily reply that they are sorry they mentioned it. Some never reply. Knock on wood, no one has taken legal action against us. The most we have ever gotten is a letter from an attorney which we turned over to our attorney and that is the last we heard.
SheliaH (Indiana)
Posts: 6,964
Posted:
What John said.
If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
MelissaP1 (Alabama)
Posts: 13,836
Posted:
I am not going to waste our money on a lawyer until the issue goes to court. If it is involving collections, that is it's own legal process. Other issues that is for the HOA board to work on till they get called into court. Find it a waste of money, time, and worry if always jumping to "Protect" mode with every difficult or empty lawsuit.
Former HOA President
DeanJ
Posts: 1,786
Posted:
I am an HOA president and we are considering having the attorneys handle a situation for the property we call the house from hell. We first amended our enforcement policy to allow legal to handle an enforcement at any point in the process and to preside over the appeal hearing.

Your current Board still needs to conduct an investigation and prepare evidence package for your attorneys.

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