Delinquent Dues finally collected!!

I just got a call from our BOD President who said that our attorney had notified him of the receipt of a check for the FULL AMOUNT sought from a delinquent HO had been received. WooHoo!!!!

I had been posting here the progress of this account. For refreshers,
1. the HO's became delinquent:
2. we sent them a courtesy note from the BOD which got no response;
3. then a demand letter from our attorney for payment which now included a late penalty, interest and attorney fee for the demand letter;
4. the HO responded back that they weren't part of the HOA so wouldn't pay;
5. that necessitated research and a letter from our attorney stating they were indeed part of the HOA and required to pay all assessments/penalties/interest & legal fees;
6. HO offered partial settlement and a letter stating they were part of the HOA;
7. BOD rejected partial settlement/didn't need their letter/demanded payment in full;
8. HO offered another partial settlement and again said they would give a letter stating they were part of the HOA;
9. BOD stood firm rejecting partial settlement/didn't need their letter/demanded payment in full
10.The BOD also voted and sent the HO a letter stating that their voting privileges in all forms had been suspended, the lien would remain on their residence and the BOD reserved the right to pursue collection at any time and with all legal means available at the HO's expense until the account is paid in full.
11. HO sends check for payment in full!

We don't have the check in our hands as yet, so we won't start dancing until we do.

This has been a learning experience for this BOD and our HOA. This is the first time that we have had to go to these lengths to collect our Dues, and I suspect may not be the last. But we knew we were right and had a duty to the HOA to set an example that we will protect the funds owed. I'm glad that the HO finally wrote the check. Maybe they learned a valuable lesson also. A $330 obligation turned into a $1,014.45 expense to them, and they could have stopped the progression anywhere along the line, but chose to draw a line in the sand...and they lost.

From this and because of posts on this forum, I will advance the thought of creating a Rules & Regs document stating the procedure which will be followed if Dues are delinquent. Then we are not flying by the seat of our pants again.

Gloria

Thanks, Donna, for the encouragement, and there were times that we needed that.

In fact, if I remember correctly, you had said that you had also addressed the issue of a HO claiming they weren't part of the HOA (at least I think it was you).

I know that the legal fees mounted up, but that was the HO's choosing. Nearly 2/3 of the amount due can be attributed to legal fees (demand letter + research into unfounded claim of not belonging + letter stating HO does belong + instituting lien). None of that would have been owed if the HO had just paid, like EVERYONE else is obligated to do.

I have no sympathy. To me, it is a black and white issue. You owe, you pay, done.

Also, I agree with not negotiating. Goes back to my philosophy...you owe, you pay.

Now we have to go back through all of our documents to create a timeline and procedure so we can create a Rules & Regs Doc. Maybe this won't happen again. Does anyone want a pair of my rose colored glasses?

Gloria

Thanks for the correction, Michele. I remember that someone had mentioned it but couldn't off the top of my head remember who nor all of the associated facts.

Yes, my fingers will be crossed until the check, minus the legal expenses, arrives in the HOA mailbox. You know that old adage "The check is in the mail." Still leaves some trepidation that the account is not really closed as yet.

In the same vain, does anyone out there have a written, established collection policy that they can post so our BOD can evaluate it against what we have had to create as we went along with this HO?

Gloria

DJ,

I totally disagree with you on the owner not believing that he was part of the association. Reread this as it means that he was aware of dues to be paid. He did not respond to attorney letters. He became delinquent and he offered partial payment with him agreeing that he was part of the HOA. Nope, he knew.

1. the HO's became delinquent:
2. we sent them a courtesy note from the BOD which got no response;
3. then a demand letter from our attorney for payment which now included a late penalty, interest and attorney fee for the demand letter;
4. the HO responded back that they weren't part of the HOA so wouldn't pay;
5. that necessitated research and a letter from our attorney stating they were indeed part of the HOA and required to pay all assessments/penalties/interest & legal fees;
6. HO offered partial settlement and a letter stating they were part of the HOA;
7. BOD rejected partial settlement/didn't need their letter/demanded payment in full;
8. HO offered another partial settlement and again said they would give a letter stating they were part of the HOA;
9. BOD stood firm rejecting partial settlement/didn't need their

They knew they were part of our HOA. They had paid Dues for three years prior, although each year exceedingly late. They attended our Annual Meetings and voted.
This year, they just procrastinated and got themselves into this battle. How they came up with trying this way out of paying the mounting legal fees is unfathomable to me. But mine is not to reason way. Mine is to collect the Dues.

Obviously, they knew they owed the Dues so it was not a matter of just paying a bill that you are not sure is accurate.

Honestly, I think they figured the BOD would accept their partial settlement rather than push. But their partial settlement would not even cover the legal fees, so why would the BOD do that?

Again, mine is not to reason why...just gimme the money.