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ConchoP (Texas)
Posts: 208
Posted:
Short story history: The developer filed a paper for it in 2016 but didn't assign an initial board. Since then, the homeowners had to take on the task of setting up and managing the HOA with no experience and little guidance. The CCRs are poorly written and only mention the filing of a lien. The past boards have done very little research and learning, leaving me as either the appointed manager or now a board member to do all the work and research.

Fast forward: We just discovered the liens expire after four years in Texas. The attorney said we could re-file the lien, but there is obviously a SOL defense to amounts due in the past four years. So I'm not sure that's worth doing, as we can not collect on amounts that fall into the SOL period legally.

In addition, I don't have any proof we followed the Texas Property Code 209 procedure, so pushing this into foreclosure probably won't work. We thought we could make a last-ditch effort to write another letter asking for payment or a payment plan and hope for the best.

My question is, has anyone succeeded in turning leins over to an attorney and actually getting paid, or filing foreclosure and still getting paid? OR do we save attorney fees and forgive the debt?
ElleN (Idaho)
Posts: 4,420
Posted:
Quote:
Posted By ConchoP on 10/18/2023 2:02 PM
OR do we save attorney fees and forgive the debt?
Don't your governing documents allow the HOA to add its attorney fees (for collection) to the debt the owner owes?

I am not saying collecting is easy. I am saying that going after the owner that owes the most might be worth the risk, by setting an example.
TimB4 (Tennessee)
Posts: 21,059
Posted:
When I lived in VA, we collected through our attorney.

We would add the legal fees (collection effort), which the Association paid, back to the amount owed.

We did get paid once the issue started in court (woke the individual up that we were serious).

Honestly, we would break even or lose a little (but not a lot).

Keep in mind that liens and legal action (regarding assessments) are to stop the bleeding.
The individual may wake up and start paying after that.
Worst case you will have to start the entire process over again if the individual simply doesn't care until it goes to court.

ConchoP (Texas)
Posts: 208
Posted:
As I had mentioned, our CCR is poorly written and only states we can file a lien. TCP 209 allows us to collect attorney fees. I'm just reaching out to see what others do and the success rate. I have no issue with following the process if it means foreclosure, that would have to be a board decision at that point.
ConchoP (Texas)
Posts: 208
Posted:
Thanks, Tim84. I agree we have to stop the bleed and wake homeowners up.
TimB4 (Tennessee)
Posts: 21,059
Posted:
I see that the TX statute does allow for attorney fees.

See Sec. 209.008.

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