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When I saw " lien" I assumed you wanted to take collections to the next level.
We don't go through the bother and expense of a lien in my SF association because that's part of the deed and the first mortgage trumps it. We do not use a law firm to handle our collections because the cost of doing so can easily exceed the amount of the delinquency and there is no way we are going to pursue eviction or renting out because we are self-managed by volunteers.
My state is in the process of revising statutes to give HOAs the ability to recover legal expenses for SF collections. We will revisit legal avenues once we have more assurances that we can recover the expense.
I think it important that associations understand their state laws, alternatives and limitations, including debt harassment. It's worth a few hours of attorney time.
When I saw " lien" I assumed you wanted to take collections to the next level.
We don't go through the bother and expense of a lien in my SF association because that's part of the deed and the first mortgage trumps it. We do not use a law firm to handle our collections because the cost of doing so can easily exceed the amount of the delinquency and there is no way we are going to pursue eviction or renting out because we are self-managed by volunteers.
My state is in the process of revising statutes to give HOAs the ability to recover legal expenses for SF collections. We will revisit legal avenues once we have more assurances that we can recover the expense.
I think it important that associations understand their state laws, alternatives and limitations, including debt harassment. It's worth a few hours of attorney time.
Mom
Thanks. Not looking to take things to the next level but also want to be sure we know what we can do. All in being prepared.
We have one house in foreclosure and one in an estate (owner death). We politely approached/talked to the owner of the one being forclosed on. He basically said take a number, the world is chasing me....LOL
In a prior HOA when a real estate sales agent was informed the HOA was preparing to file a lien for unpaid dues against a home they had listed, the agent told the seller it was best for all to clean this matter up before a lien was filed as the lien just makes the sale stickier. The sellers (happened twice) promptly paid past due HOA dues.
I do not like to make ideal/unfounded/play lawyer remarks thus I want to be sure we can go through with the action if we decide to go that route plus I am also trying to limit our legal costs.
Thanks. I do respect and value your advice. I may not follow it...but it is often wise advice...LOL
Last edited by accufitgolf; 01-21-2012 at 12:46 PM..
You only have to look as far as what you signed in most cases if you owe the HOA fees.
Yah, they can take your house legally... and the culprit that sign it over??? *you*.
P.S. It is much much harder to sell that house that owe the HOA back fees especially when there is a lawsuit involved.
And isn't it sad that the sellers have to be "forced" to pay HOA one way or another???
Thus I like properties without any HOA involved.
I'll never be forced to pay HOA anything.
You only have to look as far as what you signed in most cases if you owe the HOA fees.
Yah, they can take your house legally... and the culprit that sign it over??? *you*.
P.S. It is much much harder to sell that house that owe the HOA back fees especially when there is a lawsuit involved.
And isn't it sad that the sellers have to be "forced" to pay HOA one way or another???
Thus I like properties without any HOA involved.
I'll never be forced to pay HOA anything.
My question was not about liking or not liking HOA's.
I know contractors can file a mechanics lien just by filling out the paperwork at the magistrates office. I would think HOA's could also file a lien in the same manner though to be honest I don't know for certain. It's probably worth asking a local attorney to verify but I guess that the answer is going to be yes a lien can be filed by anyone.
Our overall goal is to gently/politely persuade those behind in HOA dues to get caught up but we want to also understand how to protect our association. We already have one foreclosure saying get in line and another in estate that refuses to respond to us so I started asking questions out here but also exploring other alternatives to collect information.
I did find that in SC one can file a complaint in Magistrates Court if the owed amount is less then $7,500.00. Kind of like small claims court. It cost $80.00 to file a complaint. The defendent is served which can be done several ways one of which is by registered mail. If the defendent does not show or the court rules in the Plaintiffs (the HOA) favor, then a judgement is issued ordering the defendent to pay. The hearing is in front of a single Magistrate Judge and rather informal like small claims court. One can bring a lawyer and one can demand a jury trial but other subjects. If the defendent does not pay the Magistrate Court can then place a Judgement Lien via the Clerk of Courts. Thus a lien. I am overlly simplfying this and not trying to play lawyer.
As of now our intent/thinking is to have a meeting with our attorney to further discuss this but as I said earlier, it is best to be prepared with information even when meeting with ones own attorney.
If the attorney fees are higher then the dues owed what does one do.....LOL
Many states have or are amending laws to allow associations to recover legal expenses associated with collections. Your state might be one of them.
Foreclosures follow a different path from the ordinary delinquency.
At some point in time, the estate is likely going to want to sell the property. They will need to pass a clean title and therefore will need to be current on association fees. Very common to be paid out of the closing proceeds when this happens.
It sounds like you have a good handle on the back stories.
Many states have or are amending laws to allow associations to recover legal expenses associated with collections. Your state might be one of them.
Foreclosures follow a different path from the ordinary delinquency.
At some point in time, the estate is likely going to want to sell the property. They will need to pass a clean title and therefore will need to be current on association fees. Very common to be paid out of the closing proceeds when this happens.
It sounds like you have a good handle on the back stories.
Mom
The foreclosure and estate is about 2% of our revenues (120 stand alone patio homes) so really not a budget issue at this time, but one we expect foreclosures might rise so presently more a learn how to protect ourselves issue at this time.
The late pays are the main issue and we are handling them with a gentle/understanding touch which seems to be working so far.
As said earlier, we are an HOA that believes in open communication, owner input, and says let us see how we can make that happen versus one that says let us see how we can deny that. I think this attitude will win out for us even with the late pays.
Thanks
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