Delinquencies Resulting in Foreclosures

I hope someone can give me an opinion on as to what is acceptable in the publicizing of delinquencies in an HOA? Can you post them? (i.e., clubhouse, gatehouse, website, etc). We recently have had a unit that was delinquent for over a year. Most other homeowners didn't even know about it, until it resulted in a foreclosure.

Also, Michelle, I've heard that other HOA's publish delinquencies; I was wondering if it had any effect? A friend of mine said in his past association that the Board posted someone's name at their guardhouse if they were late by more than 30 days. Sometimes he said it "shamed" the person into bringing their account current and in good standing.

I agree with Mary. The membership has the right to know about the financial health (or illness) of the association and dollar amounts and delinquent owners are a part of it. But using names or addresses? No, I wouldn't do that. We have a policy that once it goes to the courts or is turned over to our attorney it becomes a legal issue; one we don't want to make ourselves liable by giving out names of people involved with the legal system. So start out right---don't use names.

We provide all members a status report during the assessment collection period.

The letter/communication goes directly to each member (via USPS), and is not posted anywhere.

The status report includes the address and the owner of record per PVA tax rolls as of the date of the initial annual statement.

The status indicates either PAID or UNPAID. It is only for the current year.

If a member wants to come review the status of aged delinquent accounts, those longer than 1 year, they are more than welcome as all the records are open to the membership.

It's called transparency.

We also produce a report that lists all non-compliant lots, and also includes the owner of record (the member), on a quarterly basis.

We do not post this information anywhere, either.

I don't understand the purpose or intent behind posting such information, either online or on a real-world bulletin board. . .

Our status reports are not personal. We are all members of the same organization and all have the same deadlines and requirements and responsibilities.

If it shames someone, then they need to meet their obligations.

If we are late (which the first 2 years, sad to say, we were. It was just a timing issue and, to be honest, we just plumb forgot), then the status of our payment is listed, too.

Were we "ashamed"? No. Just a tad embarrassed at forgetting to pay.

Thank you for your response. I think the problem our association has, is that we don't have a "real system" for the collection of delinquencies. I was actually surprised to learn at our last regular Board meeting that our Association has quite a few delinquencies (1/4 of our homeowners are late, either delinquent/hasn't paid special assessments, etc?) This was quite a surprise. We also have had a homeowner that was delinquent at least 17-18 months before the property was foreclosed upon.......and I feel like our Association could have done more. Unfortunately, it appears that delinquencies are "a sign of our economy" and likely to occur again......result in a short sale, and/or result in a foreclosure.

I honor a person's right to privacy, but when does it become other homeowners right to be disclosed to? This can be something that affects a potential buyer's decision making process to buy with a neighborhood. Also other homeowners will ultimately be billed for the failure to collect these dues, either in the form of a special assessment and/or an increase of dues.

If the BOD will not enforce the rules and regs and cc&r's, why not call a special meeting under the heading of outstanding delinquencies and at the meeting discuss the alternatives to dismiss the MC and get one that will enforce your rules and regs. What is the point of having rules if nonone follows them? That allows the inmates to run the prison. Joanne

It is my opinion your Board either:
1)needs to learn how to establish policies and procedures on delinquent accounts; or
2)hire a PM who can assist the Board in doing this and educate the Board in any other areas necessary.

The Board should never disclosed publicly the property or the name of a delinquent account. However, the delinquent accounts should be provided to Board members and to other members who make a good faith request to review the association's records.

Frank,

Number 1..get rid of your current property manager. Easier said than done since it may be only the board who can do this. Number 2.. recall your present board and get some new blood in who will enforce the covenants. You don't need a fine committee but perhaps an attorney who will write letters to deliquents (and make sure the cost of preparing these letters is added to the amount owed). From what you say the board will not do this.

Now for the hard part. Distribute a flier to all homeowners with the info you have provided here and ask for responses. They can simply put their opinions in writing and drop them off at your door. $35,000 in delinquencies sounds unbelievable and it will only get worse. Take all the responses you receive to an attorney well versed in hoas and ask his advice. Even if you are still under the developer's control advice from an attorney seems the best way to go.