Reporting Unpaid Assessments to Credit Companies?

To report to the credit bureaus, you have to be a member of the bureau and you have to pay a fee to report to the credit bureaus. The three bureaus are:
http://www.equifax.com
http://www.experian.com/
http://www.transunion.com/

There are services that help small businesses report. A good article is here:
http://answers.google.com/answers/threadview?id=530287

However, I don't know if HOA Dues qualify to be reported on a credit report.

GREAT SUGGESTION! I forgot to mention that there are many debt collection laws you have to follow and turning the accounts over to an agency is a great idea. Let the professionals deal with all the legal collection issues. They can also report to the credit bureaus too.

You can use a collection attorney too.

Brad,
From what I read this new Board Member is looking for some quick action and also to establish the position of the Board on non-payment. This all can bedone within the time frame to file a lien and foreclose. I think this might work in his situation/

Skuddle - do you have a management company to do some research and help advise you?

Yes. All the management company can do is what the BOD tells it to do. Liens have been recorded. Since 2005, MOF.

The HOA really has exhausted the powers given to it by its governing documents in this case.

I agree with filing liens - including for late fees (if allowed in your docs), interest (the maximum allowed by state law, attorney fees (our association's attorney also acts as our collection attorney). Delinquent homeowners get letters stating they are delinquent, and they get another one notifying them that they will be turned over to our collection attorney if they don't pay the outstanding balance. Once it is turned over to the attorney, the HO begins incurring atty fees. We have a couple delinquent HOs that we are in the process of updating liens against. Because of their delinquency, we can file for prepayment of fees through the end of the year, as well (don't know if that's state-specific). And the BOD is looking to restrict those privileges which can be restricted.

At our annual meeting, part of the treasurer's report notes how many and how much we have in delinquencies, and we'll even say how many units are at the attorney's for collection. It's important for everybody to know that the BOD is aggressive about collecting (even if it takes a long time) and has a consistent policy. We have gotten to the point of our atty advertising (as required by law) before taking HOs to foreclosure. So far, they have always paid before the foreclosure date.

If your docs don't allow for late fees, consider trying to amend the docs. The vast majority would want to know that the delinquent few are not getting away with something. Also, see what is the norm for an amount before you take somebody to foreclosure, so the court is not likely to dismiss it. It can take our association a couple years before it gets to that point, so in the meantime, our attorney updates the liens.

It is incredible to me that between late fees, interest, and attorney fees, some HOs still have the attitude that they are getting away with something. I don't think you will convince them otherwise, but you can point out to other HOs all the measures the BOD is taking to deal with the delinquents, and what it is costing the delinquents. Some of those who are considering becoming delinquent are likely to see the light.

Skuddle, I would not turn delinquent accounts over to a collection agency. Why can't your property manager resolve these cases? Three months ago we took over an HOA which had 15% of the homes with an HOA attorney office in various stages of their collection process. By establishing a good collection policy and then personally discussing the delinquent accounts with the owners we have made arrangements with all but one owner to make increased payments until they are no longer delinquent. The collection policy encourages them to place their assessment bill on the top of the stack of bills to be paid. And we treat those you refer to as "deadbeats" using the 'Golden Rule' combined with compassion and respect.

Based on our experience we do not recommend using attorneys for collecting delinquent assessments except when the HOA needs to garnish wages/bank accounts or to foreclose. BTW, the one unresolved delinquency is with a property where the owner died and the son who inherited lives out of state. This account is still with the HOA attorneys.

"He who has the gold, makes the rules..."

(Just kidding! Or am I?)

Our managing agent has been successful in collecting assessments in all cases except for this particular HO. That case is not an inability to pay, nor is it a case wherein the HO cannot be reached. It is a simple in-your-face refusal to pay. He has multiple liens on his property. The HO will not negotiate. He is rude and vulgar on the telephone and in person. His attitude began when a covenant-related issue was not resolved to his satisfaction. He has stated on several occasions to more than one board member that he will have nothing more to do with the Association or its BOD or its assessments. His actions are consistent with the definition of a "deadbeat".

Due to the BOD's inability to decide upon a course of action, it appears that the only course of action at this time is simply to continue recording assessment liens on the property.

It would be nice if there were a way to print this thread so the "internet-challenged" board members (which most of them are) can read it. Does one exist?