Collections

Back to homepage

Unhappy Property (Manager) Loses in South Carolina

“If you think hiring a professional is expensive, try hiring an amateur.” – Anonymous In South Carolina, as in most states, there exist various consumer protection and licensing laws, intended to protect the public from the unauthorized practice of law

Read More

Constantly Changing Condominium Laws (IL)

A recent opinion from the Illinois’ First Appellate District, Country Club Estates Condominium Assoc. v. Bayview Loan Servicing, LLC, 2017 IL App (1st) 162459, provides that “prompt” payment of assessments is required to extinguish presale assessments under the Condominium Property

Read More

Fourth DCA Confirms Association Lien Foreclosure Valid Despite Pending Mortgage Foreclosure (FL)

Despite a slowing in the number of Florida mortgage foreclosure cases, many community associations still face situations where a foreclosing lender fails to timely complete its foreclosure resulting in the property sitting abandoned and not contributing financially to the community.

Read More

28 suits filed against La Bota Ranch homeowners over unpaid HOA dues (TX)

Since May 11, the two homeowners associations of La Bota Ranch have filed 28 lawsuits against homeowners who have not paid their HOA dues, threatening to foreclose on their homes if the dues are not paid.  Hearings for six of

Read More

HOA Super Lien — What is it and Why Should I Care?

In an HOA, owners who fail to pay assessments and other charges owed to the condo or homeowner’s association, will likely have a lien placed on the home by the association. A lien is a legal tool used to protect

Read More

New Technology Means More Options For Community Association Billing And Payments

Over the years, technology has dramatically changed the way community and condominium associations bill and receive payments for owner assessments, sometimes referred to as dues.  When I first started in the business in the late 80s, just about every community

Read More

The Pesky Nuances of the HOA Collection Policy

If the phrase “assessments are the lifeblood of a community association” passed your lips at the last board meeting, you either have 1) a puzzling penchant for perplexing prattle (what?) or 2) your HOA collection policy isn’t keeping up with

Read More

Accelerating Collections – One Way to Help Speed Things Up

Collecting delinquent assessments can sometimes feel like trying to hit a moving target. You get a judgment, but how do you account for the assessments that came due after you filed, or for the payments that the owner may have

Read More

Collections and HOA Dues

In a perfect world, everyone would pay his or her fair share and everything would be just. Unfortunately, this isn’t always the case, and your HOA likely won’t be either. In most cases homeowners are generally good about paying their

Read More

Illinois Appellate Court Clarifies Palm Decision Regarding Association Collections

In Lake Point Tower Condominium Ass’n v. Waller, 2017 IL App (1st) 162072, decided on June 28, 2017, the Association filed a forcible entry and detainer action against Defendant to obtain possession of Defendant’s condominium. Subsequently, Defendant filed a motion

Read More

Can an HOA collect after a mortgage foreclosure?

Q: When there are past-due HOA assessments for a property, and a mortgage lender forecloses on the property and takes title, who can the HOA collect the unpaid HOA assessments from following the foreclosure?    Read the Q&A……………

Read More

Action 9 investigates HOA debt collectors (FL)

A Winter Park woman claims a past-due homeowners association bill for $145 has turned into an astounding demand for $77,000.  Ranya Hamza blames a debt collector that bought old association debts then, she claims, demanded homeowners pay sky-high fees.  

Read More

Supreme Court Leaves Standing Wells Fargo Win on Nevada Lien Law

The U.S. Supreme Court left standing a federal appeals court ruling that could help Wells Fargo and other major banks affected by a Nevada statute covering homeowners’ association liens ( Bourne Valley Court Trust v. Wells Fargo Bank N.A. ,

Read More

Condominium Association Cannot Collect Unpaid Fees from Lender’s Assignee (NJ)

On June 6, 2017, the New Jersey Appellate Division ruled that a foreclosing mortgagee is not liable for unpaid condominium maintenance fees simply because it winterized the unit and changed the locks.  In the published decision Woodlands Community Association Inc.

Read More

Understanding HOA Fair Debt Collection Practices: Practice Tips

If you work for an HOA, serve on its Board of Directors, or own a property covered by one, there are a few things you should know about debt collection practices. So, to help you develop a greater understanding of

Read More

What NC Community Associations Need to Know about Fair Debt Collection

Nearly all Community Associations (“Associations”) must cope with owners who fail or refuse to pay their periodic assessments (also known as “Dues”). When this happens, the Association, typically acting through its property manager, may first attempt to collect the delinquent

Read More

Riverview family wins foreclosure battle with HOA (FL)

A Riverview family has won a yearlong fight with their HOA to save their home from foreclosure.  10News has been following the Lopez family’s emotional battle, after their Riverview HOA foreclosed on their home, all over a missed $150 homeowners

Read More

What NC Community Associations Need to Know about Fair Debt Collection

Nearly all Community Associations (“Associations”) must cope with owners who fail or refuse to pay their periodic assessments (also known as “Dues”). When this happens, the Association, typically acting through its property manager, may first attempt to collect the delinquent

Read More

Bankruptcy basics for community association boards of directors

Over the last decade, community associations (like other businesses) have been forced to navigate the “Great Recession” and continued recovery. The “Great Recession” brought with it a significant increase in the number of personal bankruptcy filings across the country. Even

Read More

Good Collection Practices Protect Lifeblood of Community Associations

Assessments are the lifeblood of every community association. For most associations, it is the sole source of income to pay for common expenses. Therefore, having tools and good practices to maximize collection of assessments are vital not just to survive

Read More

When It Comes To The HOA/COA Lien Process, Misconceptions Abound

Working with homeowners associations (HOAs) and condo owners associations (COAs) often leads to confusion among servicers – and that confusion may lead to problems during the lien process.   uring a recent interview with MortgageOrb, Damon Paxson, vice president of HOA

Read More

Why Associations and Their Managers Need to Be Wary of Debt Collections Practices and Laws

The fairly recent case of Agrelov v. Affinity Management Services, LLC, Case No. 15-14136, (11th Cir., November 9, 2016), is instructive for associations and their managers with respect to debt collections, and the trouble that associations and managers can get

Read More

Mortgage Bankers Assn Joins Amicus Brief on Nevada HOA Case

The Mortgage Bankers Association (MBA) joined the American Bankers Association (ABA) and the U.S. Chamber of Commerce in an amicus brief with the U.S. Supreme Court that supports a request by Wells Fargo Bank to review a Circuit Court of

Read More

Fair Debt Collections Guidance

When the Fair Debt Collection Practice Act (FDCPA), 15 U.S.C 1601, was first enacted, it specifically exempted creditors attempting to collect their own consumer debts. With the enactment of the Consumer Financial Protection Bureau (CFPB), large financial consumer lenders have

Read More

Florida Supreme Court May Decide Fate of Liens Recorded After Foreclosure Judgments

Real estate investors, municipalities, and community associations may gain some clarity about post-judgment liens if the Florida Supreme Court decides to hear Ober v. Town of Lauderdale By-the-Sea, Case No.: 4D14-4597 (Fla. 4th DCA, January 25, 2017). The case has

Read More

New Jersey Bankruptcy Court Finds Lien Held by Homeowners’ Association Is Subject to Modification

The United States Bankruptcy Court for the District of New Jersey recently overruled a creditor’s objection to the debtors’ proposed chapter 13 plan, rejecting the association’s argument that its claim is secured by a consensual lien and may not be

Read More

Florida appeals court reverses decision in condominium lien case

A Florida appeals court recently reversed a lower court’s decision in a case involving liens on condominium units.  The Florida 2nd District Court of Appeals ruled in favor of Business Law Group, et al, reversing the Circuit Court for Pasco

Read More

A New Tool in the Condo Collection Kit (NY)

Co-ops have more leverage, but there are ways for condos to collect arrears.  At a luxury Chelsea condominium called the Heywood, the condo board used an ingenious strategy to collect from a unit-owner who owed $100,000 in unpaid common charges,

Read More

Case Update: Wing Street CA v. Kiss the Chef, LLC (IL)

In the case of Wing Street CA v. Kiss the Chef, LLC, the Illinois Supreme Court will review an issue pertinent to the collection of up to six months of a foreclosed owner’s assessments from a subsequent purchaser under Section

Read More

Recent court ruling could mean millions for evicted condo owners (HI)

Condo owners in Hawaii are raising alarms over a recent federal court ruling that found condo associations used the wrong part of the law to file hundreds of foreclosures, some going back nearly ten years.  Those owners fear the ruling

Read More

The Legality of Post-Bankruptcy Condo or Homeowner Association Assessments

A recent bankruptcy case illustrates how bankruptcy affects condominium or homeowner’s association assessments. The Bankruptcy Court for the Southern District of Florida ruled that a condominium association was not in contempt when it attempted to collect post-bankruptcy assessments from debtors

Read More

Wells Fargo’s Nevada Mortgages May Get Top Court Test

A court conflict testing some Nevada mortgage holdings of Wells Fargo and other major banks affected by homeowners’ association liens may be headed to the U.S. Supreme Court ( Bourne Valley Court Tr. v. Wells Fargo Bank N.A. , U.S.,

Read More

Appeals court upholds constitutionality of lump sum association fee statute (LA)

Homeowners in the Eastover subdivision in New Orleans lost an appeal at the Louisiana Fourth District Circuit Court of Appeal, which found a state statute that facilitated the collection of association dues to be constitutional.  In a March 22 ruling,

Read More

Why Condo Associations Are Sweating After A Judge’s Ruling (HI)

It’s probably going to take years to unravel the legal and financial uncertainty now facing condominium associations and law firms that used nonjudicial foreclosures — private sales without supervision by courts — to collect unpaid maintenance fees or other assessments

Read More

Condo Boards Have a New Tool for Collecting Arrears

Court ruling gives condo boards a new way to evict delinquent unit-owners.  When it comes to evicting residents, co-op boards have traditionally enjoyed a bigger arsenal than their condo counterparts. But condo boards are not without their weapons. And that

Read More

Condo association must defend against foreclosure lawsuit

Q: A lender has filed a foreclosure suit against a condominium owner in our complex. The lender also has sued our association. It costs our community money to hire a lawyer, and I don’t see how our association is involved,

Read More

IL App. Court Holds Post-Foreclosure COA Dues Need Not Be Paid Monthly to Extinguish Pre-Foreclosure COA Lien

Reversing a trial court’s ruling in favor of a condominium association and against a mortgagee, the Appellate Court of Illinois, First District, recently held that the Illinois Condominium Property Act’s (“Condo Act”) provision creating a mechanism to extinguish liens for

Read More

Pre-Lien Demands and FDCPA Concerns (CA)

Recovering delinquent assessment debt is one of the more complicated issues that homeowners associations (“HOAs”) face. Fortunately, the Civil Code grants HOAs with significant remedies to recover delinquent assessment debt, including the ability to record assessment liens and to ultimately

Read More

Chapter 13 Plan, Not Texas Law, Governs HOA Payments

A Texas homeowners association that applied Chapter 13 plan payments first to pre-bankruptcy delinquencies, leading to improper late fees, penalties and interest, was penalized by a bankruptcy court March 27 ( In re Daulton , 2017 BL 96621, Bankr. S.D.

Read More

Don’t forget your Declaration: Appeals Court confirms necessity of the Declaration and Covenants in collection actions (IL)

The First District Appellate Court confirmed that Associations must be careful to enter their Declaration and Covenants regarding Assessment default into the record in a lawsuit to collect Assessments. In Blackstone Condominium Association v. Speights-Carnegie, (Feb. 3, 2017), the Appellate

Read More

After the Spanish Court case: Limits of Board authority to maintain collection action highlighted in recent appellate court opinion

In the recent case of 4934 Forrestville Condominium Association v. McKinley, the First District Appellate Court held in the context of an Association’s action to collect delinquent assessments under the Illinois Forcible Entry and Detainer Act, that a Unit Owner’s

Read More

Why Your HOA Needs a Written Collections Policy (AZ)

Some Homeowners Associations are lucky enough to have minimal collections concerns. However some, are constantly dealing the delinquency of homeowners falling behind on dues. No matter where your HOA sits on this spectrum, it is vital for your community to

Read More

Associations Need to Seek Ejectment Rather Than Eviction for Some “Tenants” (FL)

When the Condominium Act was amended several years ago to allow associations to demand and collect rent directly from the tenants of unit owners who were delinquent in the payment of their monthly fees, community associations thought it was an

Read More

Don’t forget your Declaration: Appeals Court confirms necessity of the Declaration and Covenants in collection actions

The First District Appellate Court confirmed that Associations must be careful to enter their Declaration and Covenants regarding Assessment default into the record in a lawsuit to collect Assessments. In Blackstone Condominium Association v. Speights-Carnegie, (Feb. 3, 2017), the Appellate

Read More

Two’s Company, but Three’s a Crowd: A Third Parties Right to Intervene in a Foreclosure Lawsuit

Are subsequent title holders who obtain an interest in real property during the pendency of a foreclosure lawsuit where a lis pendens has been properly recorded (referred to as a “Purchaser Pendente Lite”), entitled to join in the lawsuit to

Read More

What NOT to Do When Collecting HOA Fees

If just a few homeowners aren’t paying their HOA fees it can be felt very quickly in an association’s budget. It can also cause a ripple effect. If too many homeowners fail to pay their HOA fees, lenders might start

Read More

Illinois Supreme Court Agrees to Decide Whether Third Party Buyer is Liable for Delinquent Assessments to Mortgagee’s Subsidiary

According to Section 9(g)(4) of the Illinois Condominium Property Act, any purchaser of a condominium unit who acquires a property either at a foreclosure sale or by post-foreclosure purchase from the mortgagee must pay the last six months’ worth of

Read More

Nevada Supreme Court Departs From Ninth Circuit Ruling And Finds HOA Lien Statute Does Not Implicate Due Process

On Jan. 26, 2017, the Nevada Supreme Court issued a 5-0-2 decision in Saticoy Bay LLC Series 350 Durango 104 v. Wells Fargo Home Mortgage, 133 Nev. Adv. Op. 5, holding that Nevada’s HOA “super priority” lien statute, NRS §

Read More

Your Community’s Formal Collection Policy Actually Benefits Residents. Here’s How.

While many associations are lucky enough to experience very few delinquent accounts, others are not so fortunate. Whether your community is at one end of the past-due spectrum or the other, it is still important for your community to have

Read More

Restrictive Endorsement (FL)

Restrictive endorsements when coupled with payment are still applicable to associations.  As many may remember, The Florida Legislature amended Florida Statutes §718.116 and §720.3085 to include language relating to the applicability of restrictive endorsements, designations or instruction accompanying payments made

Read More