The case of Huggins v. Lueder, Larkin & Hunter, LLC, Nos. No. 20-12957, 20-12959, 20-12961, 20-14320, 20-14318, 20-14319, — F. 4th —- 2022 WL 2679024 (11th Cir. July 12, 2022), was a consolidated matter that originated when the law firm Lueder, Larkin & Hunter (“Lueder”) represented a homeowners association seeking to collect delinquent fees from […]
NUTS AND BOLTS OF FORECLOSURE: AN OVERVIEW FROM THE FORECLOSURE DEPARTMENT (CO)
As the primary foreclosure attorney at Altitude Community Law, I am often asked to explain judicial foreclosures. There are a lot of moving parts in a foreclosure, and your average citizen is often unfamiliar with the process. And, because it is human nature to shy away from the unfamiliar, board members and community association managers […]
Law Firm Can Seek Sanctions for Frivolous Filings After Judgment (GA)
A Georgia federal court misread Eleventh Circuit’s recent precedents when it dismissed a law firm’s postjudgment motions seeking sanctions for frivolous filings in a dispute over fair debt collection practices, the appeals court ruled Tuesday. Read the article…………………….
HOA Lien Procedures Explained (FL)
Q: There has been confusion on my HOA board regarding when the association can record a lien against a delinquent owner. I thought we could lien after 45 days, but our manager says we must give a warning letter first. Is this correct? Read the Q&A……………………………….
Statute of Limitations
Assessments are an important factor in any HOA, funding day-to-day operations, repairs and improvements, and the association’s reserves. When homeowners pay their assessments on time, it not only helps make the board members’ lives easier but also benefits the community as a whole. Read the entire article……………………………….
Homeowners associations will be required to notify residents of foreclosure rights (CO)
The Denver City Council approved the bill Monday night. It was introduced after at least 50 Green Valley Ranch homes were foreclosed on over unpaid HOA fines. Read the entire article……………………………….
What Not To Do When Collecting from Military Homeowners
Absentee homeowners are a fact of life in homeowners and condo associations. Snowbirds and vacation homes can be found all over the country, and so can deployed active duty military homeowners. Every day, brave men and women across the country, many of whom have their primary residence in an HOA or condo association, are sent […]
HOA Collection Policy: How To Make And Enforce It
An HOA collection policy is integral to the success of any homeowners association. Without such a policy in place, board members will find it difficult to collect past-due fees, thereby putting the association at risk of financial ruin. Read the entire article……………………………….
Delinquent Homeowner Checks: What to Look For
When an Owner becomes delinquent, and the file is transferred to the attorney for collections, the Owner should begin sending their checks to the law firm for processing. The Owner is advised in writing that the checks are to be mailed to the law firm and not the management company. Read the entire article……………………………….
Bill requiring HOAs to provide information on foreclosure rights passes first reading (CO)
Denver City Council approved on first reading a bill that would require homeowners associations to notify homeowners of their foreclosure rights. Read the entire article……………………………….
Assessments Past Due? What Should You Do Before Sending to Your Attorney for Collection Action? (FL)
Reviewing the association’s financials on a regular basis is one of the cornerstones of managing an association and fulfilling one’s duty as a board member. Ideally you will not have any delinquent accounts to address, but in the real world, there are usually a few owners who have failed to pay their assessments. Read the […]
‘Foreclosures Are Profitable’: Controversial Colorado HOA Has More Than $1 Million In The Bank (CO)
The Master Homeowners Association For Green Valley Ranch, which initiated more HOA foreclosures in 2021 than any other Denver HOA, has taken in more than $600,000 in one year from fines levied against its homeowners and the HOA has more than $1 million dollars on hand in checking accounts, CDs, saving accounts and cash, and […]
HOA Debt Collection: Is The HOA Taking Advantage?
Consumers are protected by certain laws when it comes to debt collection. Chief among them is the federal Fair Debt Collection Practices Act. But, does this law apply to homeowners associations, too? Read the entire article……………………………….
Associations Assignment Authority to Management Agent Confirmed (FL)
In Seaside Town Council v. Seaside Community Development Corp, 1D19-755 (Fla. 1st DCA 2021), Florida’s First District Court of Appeal (“DCA”) reversed the trial court’s judgment in favor of Seaside Community Development Corp. (“Developer”) holding that Seaside Town Council (“STC”), as the management agent with assignment of enforcement right by the associations, had standing to […]
The Impact of a Homeowner Filing Bankruptcy and Receiving a Discharge on Assessment Collection (CA)
Asked – Our HOA Board of Directors has been advised that a homeowner who is delinquent in their payment of assessments has filed bankruptcy. If the homeowner obtains a bankruptcy discharge does the HOA have to write off the delinquent account as a bad debt? Read the Q&A……………………………….
Colorado Court of Appeals affirms ruling in 2019 Loveland foreclosure case, vacates order to pay
The nearly three-year-long foreclosure case of Loveland resident Martha Hummel has entered a new chapter after the Colorado Court of Appeals ruled on an appeal filed by the company that bought her house following the 2019 foreclosure. Read the entire article……………………………….
How Russian Sanctions Affect the Collection Procedures and the Administration of Co-ops & Condos (NY)
The sweeping economic sanctions spawned by Russia’s invasion of Ukraine impact co-op and condo operations in terms of admissions and collection procedures and the administration of certain services to building residents. This is because conducting business with foreign nationals or entities who are subject to the sanctions could expose an association to enforcement proceedings by […]
Understand Your HOA Collections Process (GA)
Setting up an HOA collections process is one of the most important things a Board needs to do to maintain financial responsibility of the community association. While we always hope everyone will just pay homeowner’s association dues, you need to know what to do if someone can’t or won’t pay their dues. Read the entire […]
Michigan Court Of Appeals Confirms Need To Pay Condo Dues
In Frye v. Golfpointe Village Condominium Association, ____ Mich. App _____, No. 355864 (2022), the Michigan Court of Appeals affirmed a trial court’s decision granting the Association summary disposition in a case where a Co-owner challenged the Association’s foreclosure action. Read the entire article……………………………….
How to Collect Delinquent Homeowners Association Fees (GA)
Delinquent homeowners association fees are a reality that most associations have to manage. While it can be a hassle, the HOA usually has several available options to collect, including recording liens against the property, filing suit and obtaining a judgment against the homeowners, and, in some cases, foreclosing on the property. Read the entire article……………………………….
Should Delinquent Owners Voting Rights Be Revoked?
One of the thorniest issues to tackle in an HOA is homeowners in delinquency – not paying their dues or being significantly behind on dues payments. The community and owner dues are two sides of the same coin. The community cannot maintain the grounds, amenities, or sidewalks without yearly owner dues. Read the entire article……………………………….
FHFA brings foreclosures to a screeching halt for borrowers who applied for Treasury assistance
Borrowers with Fannie Mae or Freddie Mac-backed mortgages have been granted an additional two months to avoid foreclosure if they’ve applied for assistance from the Department of the Treasury. Read the entire article……………………………….
How to Collect Delinquent Homeowners Association Fees (GA)
Delinquent homeowners association fees are a reality that most associations have to manage. While it can be a hassle, the HOA usually has several available options to collect, including recording liens against the property, filing suit and obtaining a judgment against the homeowners, and, in some cases, foreclosing on the property. Read the entire article……………………………….
Can A Home Owner’s Association Legally Take Your House In NY
Homeowner’s associations can be a pain in the behind, but can they really take your home if you don’t abide by their rules? We’ve all heard of HOA horror stories. Sometimes you pay your HOA fees and they do absolutely nothing to make the neighborhood better or enforce basic rules to keep the neighborhood beautiful […]
Help! We Have a Homeowner Not Paying Assessements. What Do We Do? (CO)
At some point, most boards will experience a homeowner not paying assessments. Sometimes it’s just one, and sometimes it’s several homeowners, but regardless, this can be an uncomfortable situation for the board. Even though the delinquent homeowners are your neighbors, making sure that all homeowners pay their assessments and taking action when they don’t is […]
Mandatory Information on HOA Delinquency Notices (CO)
As managers and board of directors know, associations are required to follow the collection policy for each association. The association’s collection policy is the document that outlines the process for how collections are handled. Each policy will outline how many Notices are sent prior to an owner’s account being turned over to legal counsel. […]
Colorado bill would curb HOAs power to foreclose due to unpaid fees
A group of Colorado lawmakers is proposing a bill that would require a homeowner’s association to take several steps before moving forward with a foreclosure-related to unpaid HOA fines and fees. Read the entire article……………………………….
What You Need to Know About Lien Priority Under the Michigan Condominium Act
The Michigan Condominium Act provides that sums assessed to a co-owner’s unit constitute a lien on the unit at the time they are assessed. If condo assessments remain unpaid, condominium associations typically record a notice of lien against the subject unit to perfect the security interest and put others on record notice. At a minimum […]
Florida’s Safe Harbor – Calculating Bank Liability for Delinquent Assessments After Foreclosure of Multiple Condominium Units
The real estate market has seen a tremendous influx of large companies purchasing multiple units and lots within an association, and addressing delinquencies that began prior to transfer of title can be complicated. Just as Florida statutes layout the process by which associations can collect unpaid assessments from current owners, it also regulates how outstanding […]
Green Valley Ranch HOA Issues Statement About Unpaid Fines Foreclosures Amid Residents Claiming HOA ‘Power Trip’ (CO)
The Master Homeowners Association for Green Valley Ranch issued a statement over growing community concerns the association is going too far with violation fines and subsequent foreclosures. Of the 119 foreclosures in Denver, 50 of them are within the HOA’s community. Read the entire article……………………………….
The “Validation Notice” and Complying with New FDCPA Regulations
If your association refers delinquent accounts to our firm (or any other law firm or collection agency), you may notice a few changes to debt collection policies and procedures, such as references in collection status reports to sending a “validation notice” as the first written communication sent to a debtor. Why? Because on November 30, […]
60 Green Valley Ranch homes facing possible foreclosure by HOAs and metro district (CO)
It is a foreclosure nightmare for many in some Green Valley Ranch neighborhoods. At least 60 families are facing losing their homes after their two homeowners associations and a metro district began the foreclosure process on them. Some owners said they had no idea they were about to lose their homes. Read the entire article……………………………….
Recent Changes to the Fair Debt Collection Practices Act
The Consumer Financial Protection Bureau (“CFPB”) recently adopted a new Final Rule that amends Regulation F, 12 C.F.R. part 1006, which implements the Fair Debt Collection Practices Act (“FDCPA”). These are Federal rules governing certain activities of debt collectors, as that term is defined in the FDCPA. This is applicable to community associations because law […]
Vulnerable senior loses home after condo association forces sale to recover monthly dues (CO)
Ranae Lichtenberger can’t read or write English. She’s legally blind because of cataracts, and she’s distrustful of just about everybody due to mental stressors from her blindness and living alone. But none of that figured into the equation as the Ravencrest Condominiums Association at her town home complex forced the sale of the 65-year-old military […]
HOA Payment Plans: Should You Offer These To Delinquent Homeowners?
HOA payment plans are a common remedy that homeowners associations adopt to lower delinquency rates. But, is there a requirement for HOAs to offer these plans? And how do they work exactly? Read the entire article……………………………….
Condominiums, Homeowners’ Associations and Bankruptcy: The Lifecycle of a Chapter 13 Bankruptcy
In Part 4 of this series, I discussed how the Automatic Stay stops collection efforts against Unit Owners. In this entry, I want to go through a typical timeline for a Chapter 13 Bankruptcy case — mostly from the Association’s perspective. I do not intend this to be an exact breakdown of the Bankruptcy Court’s […]
Nevada Supreme Court Holds Challenges to HOA Liens Subject to 4-Year SOL, Which May Not Be Triggered by HOA Sale
In response to certified questions from the U.S. Court of Appeals for the Ninth Circuit, the Nevada Supreme Court recently held that: (1) an action seeking to determine the validity of a homeowners association lien under NRS 40.010 is subject to NRS 11.220’s four-year statute of limitations; (2) the four-year statute of limitations does not […]
Assessment collection policy needs update (MI)
Q: Our community association has historically only pursued assessment collection to the point of recording a lien on the delinquent owner’s property, and no further action is taken after that. I was just elected to the board, and I’m thinking maybe we need to do more, am I right? Read the Q&A………………………………….
Ninth Circuit Partially Reverses Grant of Summary Judgment in Favor of Debt Collector in FDCPA Case (CA)
In Almada v. Krieger, No. 21-55275 (9th Cir. Jan. 24, 2022), the Ninth Circuit partially reversed a decision by the U.S. District Court for the Southern District of California, granting summary judgment in favor of a debt collector in a Fair Debt Collections Practices Act (FDCPA) case. In doing so, it held that a collection […]
Florida Statute Could Strike Down Delayed Collections For HOAs Post-Foreclosure
We know that this headline reads like a Florida-specific issue, but Florida is often used as a guideline for other state laws and courts. For this reason, we think it’s important for homeowners and condo associations in other states to take note. Read the entire article……………………………….
Suspension of gate use questioned (FL)
Q: We live in a gated community. Recently, the board has begun voting at its meetings to suspend the automatic gate access of owners who are delinquent in their assessments. While I support aggressive collection efforts by the association, I am worried that this type of suspension exposes the association to risks. Is a homeowners’ […]
Dickson v. Century Park E. Homeowner’s Ass’n (CA)
An owner sued an association alleging violation of the Rosenthal Act. The court determined that an association is not a debt collector under the Rosenthal Act because it does not collect “consumer debt,” as that term is defined by the Rosenthal Act; assessments are not “consumer credit transactions.” Read the entire article……………………………….
Collecting HOA Assessments After Disaster – A Closer Look (CO)
The recent Marshall fire that ravaged Boulder County destroyed nearly 1,000 homes. In the face of the most destructive fire in Colorado history, many of those affected are now dealing with what to do in the aftermath. Rebuilding their homes (and their lives after loss) takes a community. Read the entire article……………………………….
What Is HOA Bad Debt? Is Exposing HOA Debtors Legal?
Just like any other organization, homeowners associations can also suffer from bad debt. But, what exactly does HOA bad debt look like? And would exposing the association’s debtors solve its problems? Read the entire article……………………………….
Statute of limitations for delinquency actions is five years (FL)
Q: My mother, who owned a condominium, recently passed away, and afterward I received a notice of late assessment in her mailbox. In speaking to the new management company they claim to have found that the previous management company was missing a payment my mother should have made over four years ago. My mother never […]
Condominiums, Homeowners’ Associations and Bankruptcy: The Lifecycle of a Chapter 13 Bankruptcy (PA)
In this entry, I want to go through a typical timeline for a Chapter 13 Bankruptcy case — mostly from the Association’s perspective. I do not intend this to be an exact breakdown of the Bankruptcy Court’s filing deadlines and procedures. Rather, this is more of a general, “what to expect” timeline. Read the entire […]
7 Consequences Of Delinquent HOA Dues
Homeowners are not the only ones who suffer the consequences of delinquent HOA dues. The association itself can face a lot of problems, too. When left unresolved, these problems can spiral and compound until the association is left with nothing to its name. Read the entire article……………………………….
Foreclosures—Why Do They Take So Long? (CO)
Foreclosure is generally a last resort to collect delinquent balances, and boards understandably have many questions about the process. The purpose of this article is to explain and answer questions about why foreclosures take a long time to complete. Read the entire article……………………………….
Who is Responsible for Assessments when a Homeowner Passes Away? (MN)
The American population is getting older. It is an unfortunate aspect of life, however, aging is one of life’s few certainties. The United States Census Bureau estimates nearly 1 in 5 Americans will be age 65 or older by 2030. This is somewhere in the realm of 70 million people. The Foundation for Community Association […]
Best Way to Get Past-Due Condominium Assessment Fees Paid! (MI)
Unfortunately, some condominium co-owners feel that they’re above the bylaws and continue to leave their assessment fees unpaid. If you on a condominium association’s board of directors and want to clean-up any delinquencies, there are steps that you can take. Read the entire article……………………………….