HELP Non Payment of Dues

There may be no easy answer. Even placing a lien on every unit may not result in a speed up of payments. And the next step would be to enforce the lien followed by a foreclosure sale. That could easily take nearly a year or more. Besides, what would that do to the community--to have half a dozen homes or more being foreclosed by the association and then being empty, without the prospect of any fee payments until sold.

And you would be the heel of the neighborhood, to put it lightly.

Perhaps the best answer (probably you already have considered it) is seeking to work out a monthly payment plan for each unit owner, perhaps spreading payments over two years.

You could try placing liens and then assigning the liens to an investor who would then initiate foreclosure if necessary. At least the association would receive some funding for the current unpaid expenses, but that would not do much for future expenses.

Sadly, this is the downside of homeowners associations. We reap the benefits of common interest living when times are good, but we also have to experience the communal pain when times are bad. If a member does not have the money, the member does not have the money. This is really the first serious economic test of the viability of homeowners associations.

Given the current default on fee payments, it is highly unlikely that the association could secure even a short-term bank loan. However, you might consider seeking a loan from an association member or small group to tide you over until next year.

Ultimately, as soon as you get this problem straightened out, it will be time for next year. . .

Lori,
Not sure what this means? Are you saying you are going to wait on each individual property to be sold and then try and get your money from closing.

What are you talking about total money owed? WEhat is the tone of the members as a whole, and assessment arrears, what do you do about that? Most likely to collect you would have to lien property, unless your documents include a lien is automatically place on property when you become deliquent. What does the Board say, Could you all do a huge yard sale or something along these lines? Is your creditor going to lien the association? Do you have a step by step procedural to collect monies owned by members? If not create one and follow it. George mentioned a payment plan and that could work but give some thought that if you do this, make sure it is done at an open meeting and try hard to get everyone to attend. Any possibility the county could help or should be paying a little. It could be tied to stormwater run off programs. Try the county offices or county administrator. All this shows good faith to your members. Keep records and don't be afraid to publish your attempt to resolve.

MaryA,

I never thought about this before and doubt it is in any docs but if it were possible to turn unpaid assessments over to a collection agency this would show up on the person's credit report and I'm sure then they would pay. Probably not possible but banks, department stores, etc can do this why not HOAS.

Donna, Is there anything you know of in Florida law that prohibts HOAS from turning over bad debts to collection agencies?

Ellen,

I believe the delinquency can be reported to the credit reporting agencies even if the bad debt is not turned over to a collection agency. It's my understanding the HOA can do this themselves, but if they do they should inform the members that this is one thing that may happen. This should be specified in the collection policy.

Oh, Robert. Why do you test my memory so early in the AM? Was it Arte Johnson??? I can see his face and hear him saying; "Veddy interesting, but stupid!" LOL

I don't know how you go about doing this, but I've seen recommended collection policies and it's always in there to report the delinquency to the credit reporting agencies. At any rate, I think it's worth checking out.

Mary,
You are right, Arte Johnson, and I forgot the "But Stupid". I think we should make an acronym "VIBS". I hope I remember that.

I know your sentiments about rental properties but in certain circumsatnces it sure seems to be necessary and in fact probably mandatory. In a resort area for one, when you have large numbers of "Short term rentals in condos". These people come and go frequently resulting in the law of averages catching up and you have problems that effect the whole. I don't complain when I go to a motel unless someone bothers me personally, I don't expect to take this position in my home. What happens around my home effects me persoanlly. I think it is best explained by a little instance that occurred with our Board President at one time. He rented his unit and was adament about his renters being left alone. He published a set of conditions and how they should be handled by the association members. The first solution was , "Let it go.." Most of this was parking or noise or treaspassing or littering or misuse of furniture and trashing up the place. He was asked, if someone came to his home and posted those regulations on his door, what would he say? His answer was, "It is different here." It sure is!

TarynD,
How come your property management don't know and informed the Board? Make sure your request is handled properly by P/M and you receove a written response. I take it you are a Board member, and if so, why hasn't the Board already formed a plan and incorporated it into your documents. Another reason you have a P/M.

I have just recently asked them to look into this and am fairly new to the board. I have asked on numerous occassions what else besides liens if there was anything else we could do and the president has always stated "nothing". We have recently discussed the option of foreclosure, but the other board members seem to not want to push any issues. I will be bringing all of these issues up after our annual meeting in Feb. and we have 2 new board members and I will be taking over the roll of president. I will be sure that her response is in a written format - thank you.

TarynD