Delinquent HOA Fees individuals

Started by IgnacioZ • 13 replies • 1781 views

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IgnacioZ (California)
Posts: 10

Posted:

Is it possible for a group of home owners along with members to meet with individual owners that are delinquent? So to inform them that we could loose our homes if we do not get the funds to pay off our debtors such as the roofing contractor which we are suppose to pay on a monthly basis, the water company etc..??

SusanW1 (Michigan)
Posts: 5,202

Posted:

Communication from the Board should tell those who have delinquencies what the consequences their lack of payments do to the Association.

Since Member's payment histories are supposed to be private, the idea that a group of people would be at my door to talk about my overdue homeowner dues would not sit well with me. I would wonder where they got the information. This would be a private matter between me and the Board.

MaryA1 (Arizona)
Posts: 7,043

Posted:

Quote:

Posted By IgnacioZ on 11/01/2008 6:28 PM
Is it possible for a group of home owners along with members to meet with individual owners that are delinquent? So to inform them that we could loose our homes if we do not get the funds to pay off our debtors such as the roofing contractor which we are suppose to pay on a monthly basis, the water company etc..??

Ignacio,

It's the board's duty to collect delinquent assessments! How would you like a group of HOA members at you door asking that you pay your delinquennt assessments? This is confidential information that only the board and the delinquent h/o should be privy to. Since you are concerned with not having sufficient funds to cover maint. obligations I'm of the opinion your delinquencies have really soared. The board should have a collection policy that is followed closely. After the delinquency is 2-3 months old, steps to collect through the courts s/b instigated. If that fails, then foreclosure would be the next step. Because foreclosures are at an all-time high, many assn's have had to write off delinquencies (caused by foreclosure) as bad debts and budget for this otherwise uncalled for expense. Your assn may have to ask the members to pass a special assessment if your operating funds are inadequate to meet the monthly expense of operating the assn. An increase of the annual assessment may also be warranted. Remember the old adage -- you can't squeeze blood from a turnip. Well, that certainly applies here. Many people who are facing foreclosure just don't have the money to meet all their financial obligations. Whether we like it or not, or whether it's fair or not, the HOA members who do pay regularly are the ones who have to take up the slack for those who don't or who can't.

IgnacioZ (California)
Posts: 10

Posted:

I understand, now about the foreclosure, is this something we initiate and does that mean that we as the association end up with the property possibly?

SusanW1 (Michigan)
Posts: 5,202

Posted:

The Homeowner Association, acting as a Corporation may own the unit, not individual people.

KirkW1 (Texas)
Posts: 1,665

Posted:

Basically in foreclosure the property is auctioned off (subject to all higher order liens such as 1st mortgage and taxes). Often times a representative will be there to bid what the organization wants to recover in the process.

The problem with purchasing such property from HOA foreclosure is that one would have to be ready to pay off the higher order liens as the bank is likely not going to want to extend the loan to the new owner. (Though that may be changing if it keeps them from owning the property.)

So yes, it is possible that the HOA would then own the house if they choose to foreclose. I doubt that the recovery rate for foreclosure is very high. Mostly it is a scare tactic to get the owner to fork up some money they scrape from family to save the house.

IgnacioZ (California)
Posts: 10

Posted:

Thanks for your input, I appreciate it very much.

MicheleD (Kentucky)
Posts: 4,491

Posted:

Everyone in our subdivision knows who is delinquent on their dues. We send an assessments status letter out to all association members prior to our annual meeting.

The status report contains the list of all HOA homes, by address, and has a "received" or "not received" comment under the current year assessment column.

SusannaM (Florida)
Posts: 366

Posted:

Michelle, there is another thread about this same topic and most posters said disclosing this type of info was a No No.

EllenS1 (Florida)
Posts: 1,148

Posted:

SussanaM,

If it is not legal the law should be changed. Michelle's hoa posting receivables prior to the annual meeting makes common sense. If members must take up the slack for delinquent owners shouldn't they know what paid and unpaid receivables are and who isn't complying with assessments? Just common sense but what do I know? If delinquent owners know their address will be made public it would certainly be an incentive to pay up. I do know at our last board meeting we have an owner who is delinquent and very ill. We detrmined she must not be treated any differently but we are exploring options such as charities, etc who may help this person. We as neighbors explored chipping in but with the economy the way it is that was not possible.

Sometimes a board is between a rock and a hard place.

I've always thought if there is a mortgage on the property that assessments should be excrowed like insurance and taxes but don't expect the lenders would be interested in doing that. They could care less as they have the first lien on the property...sad!

EllenS1 (Florida)
Posts: 1,148

Posted:

Excuse the typos but you get the idea...I hope.

SusannaM (Florida)
Posts: 366

Posted:

Ellen, I know what you are saying. But on this other thread "angry resident" the OP said that the delinquent HO was suing the HOA for disclosing his/her name. I said why not just list the parcel/lot or unit number ??? Some HOs have abandonned their properties so in cases like that names are irrelevant. However as far as A/R what counts is the address.

EllenS1 (Florida)
Posts: 1,148

Posted:

I believe I said the property address and not the owner's name.

SusannaM (Florida)
Posts: 366

Posted:

Quote:

Posted By EllenS1 on 11/04/2008 10:41 AM
I believe I said the property address and not the owner's name.

I realize that. And, so did Michelle. I'm hoping that our HOA would do the same once we elect a new board. However, some board members may have second thoughts about making it public. We'll see.

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