CarmenH1 (Texas)
Posts: 2
Posts: 2
Posted:
Hi we are very new board members of an HOA and we ddont know what to do when a home owner refuse to pay their dues
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Carmen from Tx
Started by CarmenH1 • 3 replies • 1419 views
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GraceH (Virginia)
Posts: 224
Posts: 224
Posted:
Carmen,
Do your documents set any guidelines for this?
My Associations' state that privileges such as pool passes, parking and water can be suspended and eventually a lien can be placed on the property and the Association can even Foreclose on it.
Do your documents set any guidelines for this?
My Associations' state that privileges such as pool passes, parking and water can be suspended and eventually a lien can be placed on the property and the Association can even Foreclose on it.
BrianB (California)
Posts: 2,820
Posts: 2,820
Posted:
your rules and regs should state your options. read them, memorize them, understand them, and follow them.
Grace's advice is pretty common for a lot of HOA's, but you must abide by YOUR set of rules.
Grace's advice is pretty common for a lot of HOA's, but you must abide by YOUR set of rules.
MaryA1 (Arizona)
Posts: 7,043
Posts: 7,043
Posted:
Carmen,
Based upon the CCRs provisions, the BOD should set about to adopt a collection policy. This policy will take those CCR enforcement provisions and expound on them. For example: the CCRs may state the board has an automatic lien for delinquent assessments; the collection policy will outline all the steps to be taken to collect on that lien, as follows:
1) Assessments are due on the 1st of the month and delinquent on the 15th. Assessments not paid by the 15th of the month will be charged a $15 late fee.
2) Assessments delinquent for 3 months will result in a demand letter from an attorney stating a lien will be filed if the account is not paid in full within 15 days.
3) If the delinquent assessments are not paid w/i 15 days of receipt of the demand letter, a lien will be filed in Superior Court.
4) If the delinquent assessments are not paid w/i 2 months of the lien filing, a default judgment will be filed in Superior Court.
5) In accordance with state law, when the member's account has been delinquent for a period of 1 year or reaches $1,200 (whichever comes first) foreclosure proceedings will be started. (NOTE: I've stated the AZ requirement; check your gov docs or state law for the requirements that pertain to your assn.)
6) All attorney fees, collection costs and court costs incurred to collect delinquent assessments will be attached to the members account and become a part of the delinquent assessment amount.
The above is just an example. Check your gov docs and state law to determine exactly what your Assn is authorized to do in order to collect delinquent assessments. After the collection policy has been adopted by the BOD it must be mailed to each member of the assn. The BOD should made a concerted effort to stick to the policy! The worst thing a BOD can do is allow delinquent assessments to reach a level that compromises the assn's budget and places a hardship on paying monthly expenses.
Based upon the CCRs provisions, the BOD should set about to adopt a collection policy. This policy will take those CCR enforcement provisions and expound on them. For example: the CCRs may state the board has an automatic lien for delinquent assessments; the collection policy will outline all the steps to be taken to collect on that lien, as follows:
1) Assessments are due on the 1st of the month and delinquent on the 15th. Assessments not paid by the 15th of the month will be charged a $15 late fee.
2) Assessments delinquent for 3 months will result in a demand letter from an attorney stating a lien will be filed if the account is not paid in full within 15 days.
3) If the delinquent assessments are not paid w/i 15 days of receipt of the demand letter, a lien will be filed in Superior Court.
4) If the delinquent assessments are not paid w/i 2 months of the lien filing, a default judgment will be filed in Superior Court.
5) In accordance with state law, when the member's account has been delinquent for a period of 1 year or reaches $1,200 (whichever comes first) foreclosure proceedings will be started. (NOTE: I've stated the AZ requirement; check your gov docs or state law for the requirements that pertain to your assn.)
6) All attorney fees, collection costs and court costs incurred to collect delinquent assessments will be attached to the members account and become a part of the delinquent assessment amount.
The above is just an example. Check your gov docs and state law to determine exactly what your Assn is authorized to do in order to collect delinquent assessments. After the collection policy has been adopted by the BOD it must be mailed to each member of the assn. The BOD should made a concerted effort to stick to the policy! The worst thing a BOD can do is allow delinquent assessments to reach a level that compromises the assn's budget and places a hardship on paying monthly expenses.
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