PasqualeP (Pennsylvania)
Posts: 1
Posts: 1
Posted:
If a homeowner falls behind in his fees, how many months are reasonable before turning over the account to a lawyer?
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Started by PasqualeP • 3 replies • 1297 views
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RogerB (Colorado)
Posts: 5,067
Posts: 5,067
Posted:
Pasquale, First I suggest your Board needs to enact Policies and Procedures (Rules and Regulations) on delinquent accounts and provide this policy to every owner. Have an effective date which provides every owner a 1 month grace per after which the policy will be enforced. We suggest filing a lien after 90 days and legal action to garnish assets after 150 days for single family homes with quarterly payments. Sooner for Condos and Townhomes depending on their specific situation. We provide statements to owners of delinquent accounts every month and notify them in advance of actions which will be taken if payment is not recieved by a specific date.
MicheleD (Kentucky)
Posts: 4,491
Posts: 4,491
Posted:
Our documents require all assessments paid by January 1 of each year. If payment is not made before February 1, (30 days) we turn them over to the attorney for collection. If not paid by March 1 (60 days) we file a lien.
Our documents provide us with the timeline. I realize some HOAs do not have such explicit guidelines in their documents.
My question back to you would be: How long do you think this is a reasonable delinquency period for any monetary obligations, much less assessments?
Our documents provide us with the timeline. I realize some HOAs do not have such explicit guidelines in their documents.
My question back to you would be: How long do you think this is a reasonable delinquency period for any monetary obligations, much less assessments?
MaryA1 (Arizona)
Posts: 7,043
Posts: 7,043
Posted:
My assn's collection policy is as follows:
30 days delinquent: late fee of $15 applied to account; administrative fee of $10 applied to account and h/o rebilled
45 days delinquent: demand letter sent to h/o with fee of $15
60 days delinquent: h/o informed that account is being sent to attorney for collection with fee of $25
Our CCRs give the board the authority to adopt a collection policy and to charge late fees. If a collection policy is not specifically outlined in your CCRs, your BOD should adopt one -- and stick to it!. This policy should be sent it to all the members. There should be no question in anyone's mind regarding what happens when a member is delinquent in paying the assessment.
30 days delinquent: late fee of $15 applied to account; administrative fee of $10 applied to account and h/o rebilled
45 days delinquent: demand letter sent to h/o with fee of $15
60 days delinquent: h/o informed that account is being sent to attorney for collection with fee of $25
Our CCRs give the board the authority to adopt a collection policy and to charge late fees. If a collection policy is not specifically outlined in your CCRs, your BOD should adopt one -- and stick to it!. This policy should be sent it to all the members. There should be no question in anyone's mind regarding what happens when a member is delinquent in paying the assessment.
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