Correcting of unpaid assessments

Started by CharlesW1 • 17 replies • 1393 views

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CharlesW1 (Georgia)
Posts: 826

Posted:

I would appreciate any/all suggestions pertaining too my particular problem. I have been a board member for two years now. We have reduced the amount that has been owed, significantly, over the course of those two years. However, I don’t feel that the remaining money owed will EVER be collected, unless sold or refinanced, some day, maybe NEVER, until then these HOs continue to live without care among those who do. Is my assumption correct? What else can be done? Why are these homeowners allowed to live in our community without paying the associations assessments?

As you may know, We are a POA appose to an HOA now, which will help in our collections process, although being a POA won’t guarantee receiving the money owed any quicker, per say. Too my understanding the POA only speeds up the wait, and more importantly puts the association at the top of the collections list, basically ensuring when/if the house is sold or refinance, any money that is available will be turned over to the association, BONUS!

I feel we are at a standstill concerning the unpaid assessments and would like your advice on how too collect NOW.

Thanks as always
Chuck W.

Charles E. Wafer Jr.

PaulM (Pennsylvania)
Posts: 1,347

Posted:

CharlesW1: Since you did use an attorney to assist with the change from HOA to POA, have you recd advice from him on your situation? I thought the POA would ensure that this would be minimized for you.

I don't believe you can withdraw any of the maintenance; lawn, snow, trash, since that would deter from the look of the community and go against the Board's responsibility.

However, you may think about your amenities which the paid assessments allow residents: pool, clubhouse, tennis,--those niceties which are able to be maintained and paid for by those who are acting responsibly.

CharlesW1 (Georgia)
Posts: 826

Posted:

PaulM,

From what I have been told, Being a POA will only “speed-up” the process of collecting assessments, ex. A-E, then F(being the collecting of money owed) and most importantly the association name will be put to the top of the “list” of debts owed, thus ensuring payment when the house is sold or refinanced, that is all.

I was lead to believe that the POA was going to magically collect previously owed assessments.

The board has denied them access to the pool and to the tennis courts, and revoked their voting privileges. Unfortunately, the people that are delinquent (several years) don’t care about that stuff as long as they have a house to live in, fine away!

Apparently these HO are aware that NOTHING can be done to them or it would have happened already, it’s sad but true.

Chuck W.

Charles E. Wafer Jr.

DonnaS (Tennessee)
Posts: 5,671

Posted:

Charles,

The top of the list would not be your POA but any mortagee holder and then State and Local taxes and leins, and then you would come somewhere after those were satisfied. We all are dealing with this aweful mess. I am suggesting that any new Budgets have a line item for this situation.

PaulM (Pennsylvania)
Posts: 1,347

Posted:

CharlesW1: Its unfortunate if you were 'led to believe' one thing and its not so now with you as a POA. However, once access to the amenities is denied, and hopefully there is an official process here to do it, there doesn't seem to be anything else to do.

Of course, your coffers still remain underfunded due to those who are not assuming their payment responsibility. Money is paid out for expenses and money has to come in to offset those expense amounts. Hopefully, it will not get to the point that you will have to levy a special assessment or raise the
assessment fee to make up the shortfall in your budget for operating expenses and those bills to be paid. That's when the "natives will get restless" and rightfully so!!!

Have you actually spoken to those in arrears and tried to work out a payment plan with them?

MicheleD (Kentucky)
Posts: 4,491

Posted:

Quote:

Posted By CharlesW1 on 02/06/2008 7:17 AM

Apparently these HO are aware that NOTHING can be done to them or it would have happened already, it’s sad but true.

Chuck W.

Well, they only THINK that nothing has been done to them, when, in fact, it has. I'm not sure how many HOs you're talking about, but the fact is that one day they WILl sell or they WILL refinance, at which time they will see reflected in whatever monies WOULD have gone to them, but didn't, exactly what it is that WAS done to them.

I know it's frustrating and doesn't satisfy us in the short run, but it's not as though "nothing" has been done. It's just a "something that is delayed" kinda.

HaroldS (Arizona)
Posts: 906

Posted:

Charles - I remember reading all your posts when you were so determined to change your association to a POA. Are you saying now that the only reason you were doing all that work was to be able to be at the head of the line to get your delinquent fees paid? I know nothing about POAs, but is a POA's standing in a foreclosure still ahead of everyone else? Foreclosures today, and losing any chance of collecting, are a big concern to many HOAs today.
It is non productive and unfair to your paying members to just sit there waiting, perhaps years, for a property to be sold to collect delinquent fees like you said: BONUS. That is a bonus? For whom? Not your paying members. Have you gotten court judgments for those delinquent fees? With a judgment you can attach wages and/or bank accounts. Are you allowed in Georgia to foreclose on delinquent fees? Harold

CharlesW1 (Georgia)
Posts: 826

Posted:

Quote:

Posted By DonnaS on 02/06/2008 7:22 AM

Charles,

The top of the list would not be your POA but any mortagee holder and then State and Local taxes and leins, and then you would come somewhere after those were satisfied. We all are dealing with this aweful mess. I am suggesting that any new Budgets have a line item for this situation.

DonnaS

I didn’t know exact what was at the “top of such list” however, I knew being a POA that if a lien was filed the association would be in line to receive any “extra” money.

So in essence we are at the top of the list, in a way. I don’t think state, local taxes and liens would deplete the entire amount collected, or I’m I just too naive to see it?

Chuck W.

Charles E. Wafer Jr.

CharlesW1 (Georgia)
Posts: 826

Posted:

Quote:

Posted By PaulM on 02/06/2008 7:59 AM
CharlesW1: Its unfortunate if you were 'led to believe' one thing and its not so now with you as a POA. However, once access to the amenities is denied, and hopefully there is an official process here to do it, there doesn't seem to be anything else to do.

Of course, your coffers still remain underfunded due to those who are not assuming their payment responsibility. Money is paid out for expenses and money has to come in to offset those expense amounts. Hopefully, it will not get to the point that you will have to levy a special assessment or raise the
assessment fee to make up the shortfall in your budget for operating expenses and those bills to be paid. That's when the "natives will get restless" and rightfully so!!!

Have you actually spoken to those in arrears and tried to work out a payment plan with them?

PaulM,

The board continues to keep assessments at a bear minimum, however due to inflation alone we are “forced” to raise assessments annually, just to keep our heads above the water.

I personally have NOT spoken too the HOs, although the PM and attorney claim they have via certified mailings, but not verbally, which could be a different avenue in which we could pursue.

Thanks, I’ll relay the advice; hopefully the other two board members will agree.

Chuck W.

Charles E. Wafer Jr.

RogerB (Colorado)
Posts: 5,067

Posted:

Charles, in Colorado an HOA qualifies for a "super lien" which places them first for 6 months of assessments. Beyond that amount the 'delinquent previous owner' is still responsible for their debt but it can be difficult to collect.

You might want to check out exactly where your POA stands. Following are suggests; you can determine whether any are applicable in your HOA and allowed in GA.
1) Late charges - set them at a level appropriate to STRONGLY ENCOURAGE payment of assesment prior to other bills.
2) Interest - set at maximum allowed to STRONGLY ENCOURAGE payment of assesment prior to other bills.
3) Notice to mortgage company - when allowed. Let delinquent owner know their mortgage company will be notified if a lien has to be filed.
4) File Notice of Lien - a significant filing charge may ENCOURAGE payment of assesment prior to other bills.
5) Garnish wages/bank accounts - when allowed. Hire an attorney.
6) Forclosure - when allowed. When garnishment is not effective have attorney initiate if the mortgage company will not. If your Declaration does not allow foreclosure then check GA statute to see if it is allowed. If allowed in GA then amend the Declaration so you can garnish and/or foreclose.

CharlesW1 (Georgia)
Posts: 826

Posted:

MicheleD,

You’re right! It’s beyond frustrating as a homeowner especially as a board member. I feel as though, there’s NO where to turn NOW. I’ve exhausted every possible solution available.

Our property manager sends a notification to the HO that is late in paying there assessments, at which time the HO is also notified of the $25.00 charge has been assessed to their account, if payment isn’t received in x number of day, a lien is filed on the home and the cost of the lien is added to the account.

The delinquent lot owner is then given x number of days to pay the account in full or the account will be turned over to the collections attorney where he will add his fees to the account, including interests, and what have you.

I feel the majority of our association felt as though becoming a POA was going to be immediate gratification. It’s hard for HOs, including myself, to justify all the hard work to NOT benefit from it NOW.

Chuck W

Charles E. Wafer Jr.

CharlesW1 (Georgia)
Posts: 826

Posted:

Quote:

Posted By HaroldS on 02/06/2008 8:36 AM
Charles - I remember reading all your posts when you were so determined to change your association to a POA. Are you saying now that the only reason you were doing all that work was to be able to be at the head of the line to get your delinquent fees paid? I know nothing about POAs, but is a POA's standing in a foreclosure still ahead of everyone else? Foreclosures today, and losing any chance of collecting, are a big concern to many HOAs today.
It is non productive and unfair to your paying members to just sit there waiting, perhaps years, for a property to be sold to collect delinquent fees like you said: BONUS. That is a bonus? For whom? Not your paying members. Have you gotten court judgments for those delinquent fees? With a judgment you can attach wages and/or bank accounts. Are you allowed in Georgia to foreclose on delinquent fees? Harold

HaroldS,

We have always pursued those delinquent with their assessments to the fullest extent of our governing document and Georgia laws. Although, our board was under the assumption that (as advice by the PM) being a POA we would “speed-up” the process of collecting the money on delinquent accounts.

The collection process NEVER ceased, while we were pursuing the POA.

I believe a foreclosure is trump, so to speak, when collecting any amount of money owned. However, in the event of a sale or refinance, some Chapter 13 (I believe) and ever some bankruptcies. The debts owned will be cover in the order of their legality, thus an HOA would be at the bottom, of such list were as a POA is at the top.

So in a sense we would have a better chance of getting this money oppose to being an HOA, that’s for sure.

I hope this help clarify.
Chuck W.

Charles E. Wafer Jr.

CharlesW1 (Georgia)
Posts: 826

Posted:

RogerB,

I’m not so sure we have the ability to file a “super lien" although I will be sure to ask.

I’ll be sure to print off your suggestions and distribute them to the other two board members although I believe we are following much of what you suggested.

We have filed judgment suits. We have also garnished wages on SOME not ALL (which still has me puzzled) on those delinquent.

I have asked the PM and our President why we can’t garnish the wages on ALL delinquent accounts and I have yet to get an answer.

Thanks for the advice.
I will certainly look into further though.

Chuck W.

Charles E. Wafer Jr.

CathyT1 (Washington)
Posts: 68

Posted:

You can collect dues from homeowners. Here's how: Do a public search on the homeowner that has not paid. Hopefully, with your search, you can locate the Deed of Trust. On the Deed of Trust, it will inform you who the homeowner's lender is. Also, their should be a PUD Rider attached to the Deed. Read the Rider and in some instances, if the homeowner does not pay the dues as required, the lender may pay them and add the debt to the homeowner's loan.

Good luck.

CharlesW1 (Georgia)
Posts: 826

Posted:

Quote:

Posted By CathyT1 on 02/06/2008 1:04 PM
You can collect dues from homeowners. Here's how: Do a public search on the homeowner that has not paid. Hopefully, with your search, you can locate the Deed of Trust. On the Deed of Trust, it will inform you who the homeowner's lender is. Also, their should be a PUD Rider attached to the Deed. Read the Rider and in some instances, if the homeowner does not pay the dues as required, the lender may pay them and add the debt to the homeowner's loan.

Good luck.

CathyT1

That’s sounds very helpful indeed. How would I do a public search, via the internet, Google perhaps?

I can only hope that the PUD rider will pay the previously owed assessments and just tack that amount on to the HO's loan.

I can only pray it is that easy. It sounds like the most logical thing that can be done. In essence the house, lot, unit, etc. is owned by the lender it is their property they would want the HO to make good on any debt owed pertaining to the property. I would think

I patiently await your reply.
Thanks for the information. I'll look into it and keep you all posted.

Chuck W

Charles E. Wafer Jr.

DonnaS (Tennessee)
Posts: 5,671

Posted:

Charles,
What County are you in? Maybe I can help also.

CharlesW1 (Georgia)
Posts: 826

Posted:

Quote:

Posted By DonnaS on 02/06/2008 2:46 PM

Charles,
What County are you in? Maybe I can help also.

DonnaS,

That would really be appreciated. I found the site however, its going to take a while to learn to navigate through it.

I live in Lawrenceville, Ga. Gwinnett Co.

Thanks again, if you need additional information just let me know
Chuck W.

Charles E. Wafer Jr.

DonnaS (Tennessee)
Posts: 5,671

Posted:

Hey Charles,
Glad that you found it and now, because you have names and addresses, you are good to go. It does take some learning to get around the sites but there is a wealth of information there. I wish you success.
Donna

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