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DanielJ (Georgia)
Posts: 31
Posted:
I live in Athens, Georgia (Clarke County) and am the treasurer of our HOA. Our dues is $100.00 per year due by 1/31. Our covenants allow the board to file a lien against the property of owners who are delinquent in their dues. However, the HOA has never had to file a lien. Second notices were sent out early last month and we collected $2400.00 as a result. $1900.00 is presently owed. We are about to mail out third notices and want to include a reminder that the HOA does have the authority to file a lien for non-payment of dues. The type of lien we would like to file is such that if the property is sold, the lien for dues owed must be satisfied before the sale can be effected.

Question: How easy is it to file the above type lien? I called the court house and was told that we should have a lawyer file the lien as it is an involved process. Others say it's simple. We are clueless in this area. Any suggestions. Many thanks.
SteveP5 (Florida)
Posts: 50
Posted:
Wow 100 bucks a year and they still don't pay up.
Better do it right or it will be contested and fail.

Look for an attorney that specializes in this sort of thing. The fees are not that bad and if you prevail it is usually covered by the owner you are acting on anyway.
JaniceM1 (Georgia)
Posts: 27
Posted:
Daniel-

I am from Georgia too. We have an attorney on retainer for $1650 a year and worth so much more. We do have to pay extra for them to file a lien, however we first have them do a "Payablility Report". This is a finacial background check on those accounts in question and will process if the resident can pay. We have found some accounts we should not proceed with the lien process. You have to know before hand because you file a lien it only puts you in line with other collectors.
Also, I have a question: Are you an HOA or POA?
POAs in Georgia have an easier way to file liens against their owners than HOAs. In a POA the recorded documents serve as the first notice (you don't have to mail additional notices- the owner defaults when they don't pay by the due date).
You also need to think about your cost to collect VS. the amount you will collect. True all additional fees should be paid by the owner at fault according to your CCRs (check your CCRs for this), but is it worth the associations time and money to pursue collection on $100 accounts? Look at the cost to file and remove plus the time to do each and the letters that have to go out. I am not suggesting to stop the efforts, but factor the cost first. Suspend privileges, add past due fees, use the tactics outlined in the CCRs to the fullest. If you have a pool (on $100 a year I'm not sure) most people pay right before the pool opens.
I do recommend an attorney for your association,but you don't have to have one to file a lien the process is not the hard.
janice
EllenS1 (Florida)
Posts: 1,148
Posted:
Daniel,

I must disagree with both the court house saying you need an attorney to file a lien as "it is an involved process" and Steve who advises to get an attorney. Do some homework..find out if a letter (certified) must be mailed and how many days prior to filing a lien, obtain a lien form and file it. $100 assessments per year hardly calls for an attorney. You can do it. If the person at the court says you need an attorney ask them why contractors don't need an attorney to file liens for non-payments.
EllenS1 (Florida)
Posts: 1,148
Posted:
Janice,

Good advice.
KirkW1 (Texas)
Posts: 1,665
Posted:
Most declarations allow the HOA to tack on collection costs to the resident. So in most cases you will recover what it costs to file the lien at some point. From what I understand the cost of having an attorney file the lien can vary quite a bit. Under developer control, the attorney first sent a reminder (at a cost of $250 give or take). Then when filing the lien also performed a title search adding another $750 or so in costs.

Many here on the forum have filed liens themselves. I really don't know, but currently none of our BOD members would have time to file the lien anyway. All the same the BOD carry overs plan to put looking for a cheaper alternative to filing the liens.
SteveP5 (Florida)
Posts: 50
Posted:
Quote:
Posted By EllenS1 on 05/06/2009 4:08 PM
Daniel,

I must disagree with both the court house saying you need an attorney to file a lien as "it is an involved process" and Steve who advises to get an attorney. Do some homework..find out if a letter (certified) must be mailed and how many days prior to filing a lien, obtain a lien form and file it. $100 assessments per year hardly calls for an attorney. You can do it. If the person at the court says you need an attorney ask them why contractors don't need an attorney to file liens for non-payments.

I'm a contractor and I don't file my own liens. I don't know of a single contractor silly enough to file his own liens.
The Lawyer who deals with all our problem clients charge us 100.00 dollars plus postage to file a lien, so why take a chance in making a small mistake and then loosing.

Leter from you saying your are filing a lien < letter from the attorney saying he is filing a lien.

I think the problem here is that "you are going to need and attorney" is being confused with "you must have an attorney"

RobertR1 (South Carolina)
Posts: 5,164
Posted:
To all excellent discussion here and lots of good advice. I just wonder if the OP would be more informative about the association. How large is is, how many in foreclosures and what EXACTLY does the documents say. Also try and define the type lien you are filing with the specifics in your documents if you can. If I am not mistaken you can file a mechanics lien in SC for about $10.00, but I am not sure that is the kind of lien you want to file if there is money involved that you hope to get back during foreclosure.
Maybe large associations benefit with a lawyer on retainer and this foreclosure business becomes sort of routine, but a small association can get in trouble financially retaining a lawyer in a contested case.
I really suspect that with all the foreclosures going on a canvas of your area might pinpoint a association that may have considerable information about your area. I know the county where I live publishes notice of all foreclosures and associations are usually named as part of the foreclosure. I think I might turn to one of those that are experiencing lots of foreclosures and see how they do it and get some end cost estimate and also to see how successful these associations are in getting money back.
This has been said before: one size doesn't fit all.
AlexiaR1 (Georgia)
Posts: 2
Posted:
Janice,
Did I read you were happy with your attorny? We are being told we have the best attorny in the erea (woodstock), but he hasn't done a thing for us in regards to collections and his retainer is very expensive. Our conttract expires at the end of this year and I would like to see if I can find another attorney who will actually work for us. Can you tell who you guys use?

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