Nevada’s Homeowner’s Associations (HOAs) have won again in their battle with mortgage lenders challenging Nevada’s super-priority lien law, this time in the United States Court of Appeals Ninth Circuit. Read the article…………………………………..
Oregon Supreme Court Holds HOA Lien Primes First Mortgage or Deed of Trust if No Foreclosure Within 90 Days of Notice
The Oregon Supreme Court recently held that a lien for delinquent condominium assessments has priority over a first mortgage or deed of trust, where the mortgagee fails to initiate a foreclosure action within the 90-day notice period prescribed by ORS § 100.450(7). Read the article………………………………….
HOA Debt Collection Under the Fair Debt Collection Practices Act
The novel Covid-19 pandemic presented inevitable challenges to housing. Many individuals were rendered unable to meet their financial obligations, including mortgages, HOA fees, and other housing payments. Homeowners Associations (HOA) set specific rules and regulations that every homeowner is required to follow. You have to pay HOA fees if you live in an HOA-controlled community. […]
Who is responsible for HOA dues after foreclosure?
When an owner doesn’t pay their dues, the entire HOA has to deal with the consequences. Fees from owners are factored into an association’s budget, and when owners fall behind on payments, the HOA can’t cover all of its expenses. Read the article……………………………………
4 steps for collecting delinquent HOA fees
Homebuyers looking at property in your community may have many questions, and some of those questions may relate to the cost and operations of the community association. A well-prepared inquirer may request information about the reputation and financial standing of the HOA or COA as well as the amount of annual fees. Experience as a […]
Avoid Risky Policies when Collecting Assessments from Delinquent Condominium and HOA Homeowners (MI)
Question: Can the Board of a Condominium Association or HOA post a list of delinquent members on the Association’s website to shame them into paying? Read the Q&A……………………………….
What Payment Methods Should Be Made Available For Homeowners?
“How do I pay my HOA fees?” Homeowners often ask this question, but many HOAs only offer the same traditional method. But, there are a few different payment methods for HOA dues that associations can start adopting. Read the article…………………………………….
7th Cir. Holds Plaintiff’s Annoyance, Infuriation, Aggravation, Indignation Not Enough for Standing to Sue
The U.S. Court of Appeals for the Seventh Circuit recently held that a debt collection letter that references a legal remedy that could be pursued but is ultimately not pursued is not itself a sufficient basis to confer Article III standing Read the article…………………………………….
Appropriate Steps to take when Collecting Assessments from Delinquent Condominium and HOA Homeowners (MI)
If you are a Board Member of a condominium or homeowners’ association, you may encounter residents who do not pay their monthly or annual assessments on time. Although an association’s governing documents, along with Michigan law, outline the procedure for collecting assessments, they do not always include the timing or strategies involved. A collection policy […]
Step-By-Step Guide To The HOA Assessment Collection Process (CA)
Collecting dues for many homeowner associations can be a difficult task, especially when there are a large number of tenants. Fortunately, by following a straightforward procedure and examining all of your alternatives, you can make HOA assessment less of a hassle. Read the entire article……………………………….
Lenders May Still Have to Participate in Foreclosure Mediation in Florida
In response to the mortgage foreclosure crisis, the Supreme Court of Florida established a statewide mandatory mediation program for residential mortgage foreclosures. Due to the mandatory mediation program being largely unsuccessful, the Supreme Court of Florida terminated the program on December 19, 2011. However, lenders should be aware that judges are still able to refer […]
When the Board Decides to Raise Late Fees – Keep it Reasonable (OH)
With increasing postage rates and other costs, some boards are considering raising the association’s administrative “late fee” assessed to delinquent owners. When an owner fails to make timely required payments some administrative actions are taken including account reviews, second billing statements, and the sending of delinquency reports to legal counsel. Read the article…………………………………
Update: Collections During a Pandemic (OR/WA)
Many associations have inquired whether they can take any collections action during this pandemic. Neither Federal or Washington or Oregon State laws, prohibit an association from sending delinquency notice letters, recording liens, or filing lawsuits. Read the article…………………………..
Not a Leg to Stand On: Seventh Circuit Strengthens Standard for Finding Article III Standing
In December 2020, the Seventh Circuit issued no less than six rulings examining and raising the bar for Article III standing in Fair Debt Collection Practices Act (“FDCPA”) suits. The Court has taken a hard stance, refusing to find standing where plaintiff debtors cannot plausibly allege or prove any concrete harm as a result of […]
Receivership: What’s In It for Me? (CO)
The business of collecting outstanding HOA dues is often fraught with roadblocks. Payment promises are routinely broken, checks bounce, debtors are self-employed or frequently change jobs making wage garnishments ineffective, and bank garnishments often yield pennies on the dollar compared to the cost of issuance and service of the writ. If you are a board […]
Nonjudicial Foreclosures – Weapon in Cooperative Board’s Arsenal (NY)
Because of the unique form of ownership in cooperative housing corporations, boards have a weapon in its arsenal to enforce shareholder obligations – the nonjudicial foreclosure sale. In cooperatives, owners are shareholders in the cooperative corporation and lessees under a property lease with the cooperative. Because of this ownership structure, proprietary leases contain provisions allowing […]
9th Cir. Reverses Trial Court Ruling in Favor of Defendant on FDCPA Claim Related to Bankruptcy
The U.S. Court of Appeals for the Ninth Circuit recently reversed an award of summary judgment in favor of a defendant debt collector against claims that it violated the federal Fair Debt Collection Practices Act (FDCPA) by attempting to collect a debt that was discharged in bankruptcy and no longer owed. Read the article…………………………………
The Voluntary Payment Doctrine and HOA Liens
Homeowners disputes with HOAs and condominium associations frequently revolve around disputed demands for payments, large and small. Homeowners often wonder if they have to pay their monthly assessments if their HOA failed to fulfill an obligation. Generally speaking, if the assessments were legitimately determined by the HOA’s board of directors pursuant to its recorded instruments, […]
Condo/HOA Collections 101: Payment Plans
In good times and bad people fall behind on their obligations and require some time to sort out their finances. This happens often in condos and HOAs and the best solution is to offer an owner who has fallen behind a payment plan. Read the article………………………………….
HOA Homefront: Our community stopped collecting dues in the pandemic. Is that legal? (CA)
Q: Recently our board stopped dues collection for six months because they said some homeowners were experiencing financial hardship. The board has no plans to ask owners to pay back dues. Is this legal?
Now is Time to Reverse Negative Stereotype of Community Associations for Rigid Enforcement, Collections (FL)
The GEICO Insurance TV commercials featuring an over-the-top HOA rules enforcer named Cynthia who takes a chainsaw to a noncompliant mailbox are hilariously satirical because they ring a bit too true. Community associations have a negative image in the minds of many for perceived over-reach in their enforcement measures. Unfortunately for associations, this stereotype is […]
HOA Collections And The Fair Debt Collection Practices Act
HOA dues collection can be a chore, which is why many HOAs turn to third parties for assistance. When it comes to collecting dues, though, it is important to stay compliant with the federal Fair Debt Collection Practices Act. Read the article…………………………………
Board Members: Tips for Handling Delinquencies
As the fallout from the COVID-19 pandemic persists, financial uncertainty is still a reality for many homeowners. Boards are tasked with making difficult decisions when it comes to how to manage assessment delinquencies, which may be on the rise. On one hand, the HOA board has a fiduciary duty to protect the association’s assets. On […]
A Condominium Owner Did Not Pay The Assessment. How Do I Collect? (FL)
Under Florida law, condominium associations have the ability to assess unit owners for their proportional amount of the costs and expenses for maintaining and operating the condominium property. The ability of condominium associations to collect assessments from unit owners is provided for in Chapter 718, Fla. Stat., and in the condominium’s governing documents. If a […]
Association Publication of Deadbeat List & Third-Party Purchaser Assessment Liability (FL)
Two New Cases Board Members and Managers Need to Know About – CASE No. 1: On June 12, 2020, the Florida’s Fifth District Court of Appeal (“5th DCA”) entered its opinion in Latheresa Williams, On Behalf Of Herself And All Others Similarly Situated v. Salt Springs Resort Association, Inc., and Bosshardt Property Management, LLC., Case […]
Officially The Deadbeat List is Dead & for Good Reason
Every community has it’s share of problem owners, from the ones who refuse to follow the guidelines and complain about every bylaw to those who just can’t make their assessment payments on time. It can be a frustrating and endless cycle for many board members, but it has never and will never justify the use […]
Repayment Plan Considerations for Your Struggling Homeowners
COVID-19 has almost brought the world to a stand-still. Many businesses have been crippled, and millions of people have lost their jobs. Many families are struggling to make ends meet because of the pandemic’s effects. Homeowners are also finding it difficult to honor their assessment payments. Homeowners associations are obligated to collect assessment fees under […]
SB-908 Signed! Debt Collection Licensing Act (CA)
On September 25, 2020, Governor Newsom signed Senate Bill 908, the Debt Collection Licensing Act (“SB 908”), which creates a new licensing law applicable to debt collectors and debt buyers, administered by the Department of Business Oversight (“DBO”), effective January 1, 2022. Moreover, SB 908 provides for licensure regulation, oversight of debt collectors, definitions of […]
Claims of Lien For Community Associations: How to Effectively Utilize them to Compel Payment (NC)
Many community association managers know that a lien can be placed on a delinquent owner’s lot as a method of securing repayment of assessments. Read the article……………………………….
Lien Priority – Where Does Your HOA Stand? (AZ)
Pursuant to A.R.S. Section 33-1256(B) / 33-1807(B), an HOA lien for assessments, late fees related to assessments and collection fees/attorney fees/costs incurred with respect to assessments has lien priority ahead of all other liens, interests and encumbrances on a lot/unit except: (1) liens and encumbrances recorded before the recordation of the declaration; (2) a recorded […]
Eviction Moratoriums: What’s on the Horizon for the Collection of Assessments for Condominiums and Homeowner Associations (IL)
The COVID-19 pandemic has had a devastating effect on our State. The ramifications of the pandemic has no doubt extended far and affected many. Illinois Governor Pritzker has passed two Executive Orders that essentially stay all eviction proceedings. Specifically, Executive Order 2020-10 halted the enforcement of residential evictions. Under this Executive Order, landlords were unable […]
Fifth DCA Recedes From Its Own Precedent Ruling Community Association Assessments Are “Debts” Under FCCPA (FL)
In a recent decision Williams v. Salt Springs Resort Association, Inc., Case No. 5D18-3913 (Fla. 5th DCA, June 12, 2020), Florida’s Fifth District Court of Appeal receded from its own longstanding precedent in holding that condominium assessments may be considered “debts” within the meaning of Florida’s Consumer Collection Practices Act, Chapter 559, Florida Statutes (“FCCPA”). […]
A Summary of Collecting Delinquent Community Association Assessments (VA)
For those who live in a community with a homeowners association (also referred to in Virginia as a “property owners’ association” or a condominium association (an “Association”), you are no doubt familiar with assessments that go toward landscaping, parks, and pools, and declarations and bylaws that govern architectural changes to the exterior of the homes. […]
Balancing Act?
Community associations are bracing for a wave of delinquencies. Boards may need to walk the tightrope between compassion and collections to help contain the coming crisis. Read the article……………………………
Follow these 4 Critical Steps Before You Make a Payment Plan for Assessment Collections
Often in life, things do not go to plan and people will fall behind in their financial obligations. Even the best-intentioned owner in an HOA or Condo can fall short and not be able to pay their maintenance fees. Before the association goes full-throttle records a lien and files for foreclosure, it’s always a good […]
Communicating With Homeowners in Collections
Do you ever hear from upset owners that have been referred to collections? We deal with our fair share of upset owners and we know from experience that sometimes these owners will reach out to their management company or board of directors. In fact, we have noticed an increase in homeowners doing this over the […]
Condo/HOA Collections 101: Underwriting in HOA Collections
Underwriting in the collections field is creating a profile of property with delinquent assessments, and the owner of the property. Knowing the property’s profile, including the amount owed to the community association, and its legal status is critical. Not having the fact pattern can impede a collections effort. Importantly the aspect of underwriting centered around […]
Shelborne South Beach unit owners lose appeal contesting $30M in assessments (FL)
A pair of investors who bought condo-hotel units in the Shelborne South Beach suffered a significant setback in their quest to reverse a three-year-old court ruling that deemed $30 million in special assessments legal and necessary. Read the article………………………………
9th Cir. Holds Quiet Title Claims By GSEs Subject to 6-Year HERA Statute of Limitations
The U.S. Court of Appeals for the Ninth Circuit recently held that, under the federal Housing and Economic Recovery Act (HERA) statute of limitations provisions, a quiet title action brought by Freddie Mac or Fannie Mae is a “contract” claim with a six-year statute of limitations, and not a “tort” claim subject to a three-year […]
Governor Polis Signs Senate Bill 20-211 (CO)
In late June, SB 20-211 was approved, limiting creditors, including owner associations, from taking extraordinary actions to recover assessment delinquencies. Specifically, associations are prohibited from garnishing wages, levying bank accounts or otherwise executing on a court judgment. The Act is intended to provide some relief to individuals who have been financially impacted by the COVID […]
Did you know that Owner Bankruptcy Filings Do Not Discharge Association Assessments or Pre-Petition Liens?
During these challenging economic times, many owners are failing to pay assessments and may even threaten to file, or actually file for bankruptcy protection. Many associations mistakenly believe that unit assessments are fully discharged when an owner files for bankruptcy protection. Pursuant to Section 523 (a) (16) of the U.S. Bankruptcy Code (cited as 11 […]
Do Your Due Diligence When Choosing An HOA Collection Agency
If you are on a board of directors of a Condo or HOA or you manage one there will be delinquencies. If you have decided that your community association attorney does not get the job done in recovering your money, you may want to consider a collection agency. Here we will advise you as to […]
9th Cir. Holds Conditional Offer Not Sufficient to Satisfy Nevada Superpriority HOA Lien
The U.S. Court of Appeals for the Ninth Circuit recently held that a conditional offer from a lender was not a valid tender to satisfy the superpriority portion of an HOA lien……A condominium owner fell behind on the assessments she owed her homeowners association (“HOA”) and filed a Chapter 7 bankruptcy on Feb. 29, 2012. […]
What You Need to Know About Fair Debt Collections Laws for Your HOA
Debt collection done wrong is a very expensive proposition. Even if you are not a licensed debt collector you cannot or should not violate Fair Debt Collection Statutes. It can become expensive and litigious. Even if you are a manager or a member of the board of directors at your HOA or Condo you need […]
Loveland woman scores major win in homeowners association foreclosure case (CO)
Martha Hummel was handed a major victory on Monday as a district court judge overturned the default judgment that allowed her homeowners association to foreclose on her Loveland home in 2019. The ruling came as a relief for the 70-year-old, who learned in August that she was being evicted from her house because of unpaid […]
Fourth Circuit Joins Sister Circuits to Broaden the Scope of the FDCPA’s Statute of Limitations
One of the first lines of defense when defending allegations of a statutory violation is the statute of limitations. As a complete bar to a plaintiff’s claims, the statute of limitations is one of the most powerful tools in a defense litigator’s pocket. Recently, the Fourth Circuit joined the Sixth, Eighth, and Tenth Circuits in […]
When can an Association foreclose against an Owner? (AZ)
The Laveen Meadows Homeowners Association (“Association”) filed a foreclosure lawsuit against a homeowner for unpaid assessments and other amounts. The homeowner did not respond to the lawsuit so the Association applied for a default judgment. The defendant then remitted payment for $5,000, which covered the entire balance of unpaid assessments. The defendant argued that this […]
Condo/HOA Collections 101: Skip Tracing
Skip Tracing is a term used by collection agencies (and other entities) to locate a person and obtain their contact information. It is the first step in the collections process. It is important to know where a debtor may be found. Once a debtor is located they can be engaged to discuss how they may […]
‘Deadbeat list’ gets condo complex in trouble as class action gets OK from Fla. court
A condominium complex in Florida will have to face a class action lawsuit after publicizing the names of every tenant who was behind on payments. The Fifth District Court of Appeal on June 12 ruled against Salt Springs Resort Association, which posted a list of more than 100 names and the amounts they owed on […]
How to Make Outbound Calls to Collect Delinquent Assessments in Condos and HOA
In the effort to collect delinquent assessments in a condo or HOA, one of the tools used will be outbound calls. These calls to delinquent owners are very effective in that in some circumstances people are unaware that they are delinquent in their obligations to the association. Outbound calls to collect delinquent assessments in condos […]