The success of an association, in large part, depends on its fiscal wellbeing. Associations rely on its members to pay their dues in order to ensure maintenance of all the common areas that owners not only enjoy, but that increase property value. What follows are eight techniques for keeping your association’s delinquencies at a minimum. […]
Court Of Appeal Makes Condominium Association Foreclosures More Costly
The Third District Court of Appeal recently issued an opinion that is a game changer for third-party purchasers of condominium units at foreclosure sales. The Third District’s opinion in Aventura Management, LLC v. Spiaggia Ocean Condominium Association, Inc., Case No. 3D11-2545 (Fla. 3d DCA 2013), absolves third-party purchasers of responsibility for a prior owner’s past-due […]
When Should an Association Consider Forgiving an Owner’s Debt?
Owners in your community may frequently request that the board forgive their debt. Can, and should, the board do this? First of all, as many of you are aware, the Board has a fiduciary duty to collect assessments on behalf of the association. That includes the ability to not only assess late fees and interest […]
Third DCA Opinion Deals Significant Blow to Condo Associations That Foreclose on Units in Advance of Banks
For the past several years we have written many articles in this blog encouraging condominium associations to aggressively move their foreclosure cases forward in order to take ownership of those units whose owners are delinquent in advance of the banks’ foreclosures. RealtyTrac’s data shows that it takes an average of 2.5 years for bank foreclosures […]
All HOA and Eviction Lawyers Should Read This Case
One of the more powerful and least understood provisions of the Forcible Entry and Detainer statute allows condo associations and certain other community interest associations to evict homeowners from their units for the non-payment of assessments. The association can then place a tenant into the unit and can apply the rental proceeds to the homeowner’s […]
Assessment Collection Strategies – Not All Attorneys Agree
Attorneys from the law firm SwedelsonGottlieb and Association Lien Services (“ALS”) attended California Association of Community Managers’ (“CACM”) 2013 Northern California Law Seminar in January of 2013. One of the programs dealt with assessment collection strategies. We did not like everything that we heard. This post is intended to set out our thoughts and opinions […]
5 Ways to Reduce Assessment Delinquencies
Our law firm helps many HOA boards and managers collect past-due assessments (dues) from members. Collecting on delinquencies is not easy work in any event, but it can inadvertently be made even more difficult than necessary by a manager or board. Here are 5 ways to help ensure delinquencies can be collected in a timely […]
Payback Time: Florida Homeowners Foreclosing on Banks
Since the housing bubble burst in Florida five years ago, more than 400,000 borrowers have had their homes foreclosed on by their lenders. But for some, it’s payback time. Hundreds of homeowners and condo associations are foreclosing on banks that have failed to pay dues and other expenses on the properties they’ve repossessed. Read More……
Condo Associations & HOAs Losing Millions Nationwide
According to recent reports, more than 1.2 million worthless checks enter the banking system every day in the United States. Check fraud losses account for more than 20 billion dollars per year and the number of cases is increasing by approximately 25% each year. I know from my own experience with community associations that fraud, […]
Making a List and Checking it Twice
It’s that time of year again when Boards are planning for the New Year. One of the tasks on their list should be to make sure the Association has enacted the mandatory governance policies and that each policy is being consistently implemented. Read More……
Sixth Circuit rules condominium assessments qualify as debts under FDCPA
In the recent case of Haddad v. Alexander, Zelmanski, Danner & Fioritto, the Sixth Circuit held that assessments imposed by a condominium association on individual unit owners qualified as “debts” under the Fair Debt Collection Practices Act (FDCPA). Under the FDCPA, a debt is “any obligation or alleged obligation of a consumer to pay money […]
When Owners Don’t Pay: HOA Boards Struggle to Make Ends Meet
Nothing remained in the New Jersey townhome after the owner, exasperated and struggling, financially picked up and left. And took everything with him. “Not only did he walk away, but he gutted his house,” says Joseph J. Balzamo, a president at Alliance Property Management LLC in Morristown. “He took the appliances, he took the electric, […]
‘Redemption’ from Uncollected Debt
Last week Gina Botti blogged about the importance of properly recording an association assessment lien. Although CCIOA states that a lien is ‘perfected’ or in place upon the recording of the association’s Declaration, it is still important to prepare and record a Notice of Lien to ensure that the lien is not overlooked upon the […]
Neither a Community Association Nor its Management Have Liability under the Federal Fair Debt Collections Practices Act
We have had to extricate several of our clients from claims or lawsuits relating to the federal Fair Debt Collections Practices Act (FDCPA). It is well settled law that the FDCPA applies to the collection of delinquent and unpaid assessments for condominium and homeowner associations. However, the FDCPA does not apply to collection efforts which […]
Assessment Collections Practices are Leading to Lawsuits
Recent lawsuits involving community associations have created quite a stir among condominiums and homeowners associations, as owners have alleged in the suits that law firms and associations are improperly seeking to collect unpaid assessments, interest and other charges in violation of Florida law and the governing documents of the associations. The lawsuits seek to recover […]
Assessment Collections Fees in “No-Cost” Collections Contracts
The United States Bankruptcy Court in California recently ruled in a case that may impact the terms under which Homeowners Associations (“HOAs”) contract with collections companies to pursue delinquent assessments. Read More……
Aggressive Strategies with Foreclosure Properties Helping Many Associations
During the slow recovery in the housing market, many community associations are taking more aggressive approaches with foreclosures and rentals to recover delinquencies and gain financial strength. These associations are using their lien rights in order to avoid the issues that arise with bank delays in foreclosure cases, as delays have become the norm in […]
How a condominium association can beat the bank to money
In today’s economy, banks and courts are processing foreclosures at a historically slow pace, evidenced by the New York Times article predicting that it will take close to 62 years for the foreclosures currently pending in New York State to come to a disposition. Generally, when a unit is being foreclosed upon by a bank […]
How a Condo Board Can Collect Arrears By Using a Little-Known Tool Called DILF
With the recent economic downturn, condominium boards have been plagued by unit owners defaulting on their monthly common charge. With fewer unit-owners paying, boards are faced with the prospect of increasing common charges in order to collect the deficit from those owners in good standing — unless they can collect the unpaid charges. Read More……
The Vicious Cycle of Collections and a Solution: Acceleration!
Situation: On January 10, 2012, your association obtains a judgment against a homeowner for the balance, as of that date, of unpaid assessments, late fees, interest, attorney fees, and costs. In June of 2012, through a wage garnishment, the judgment balance is collected. Success? YES and no. Read More……
Before You Start Pointing Fingers….
I recently read an article where a homeowner was upset about her condominium association initiating foreclosure proceedings against her for her failure to pay her assessments. While people may read this article and feel sorry for the homeowner, one should keep in mind that the homeowner failed to appear at court to protect her interests […]
AZ: Class Action Filed Against AZ HOA Management Companies
Class Action Lawsuit Filed by Arizona Homeowners Against Arizona HOA Management Companies Alleging Millions of Dollars of Damages for Violations of Federal Debt Collection Laws and Arizona Law Read More……
Rogers Towers: Defeating Homeowner’s Association Claims for Unpaid Assessments in Foreclosure Cases
When is a first mortgagee not liable for any unpaid HOA assessments that came due prior to taking title? Judging solely by the text of § 720.3085(2)(b), it would seem that a first mortgagee that takes title to property through foreclosure or deed in lieu would instantly become liable to the HOA for unpaid assessments […]
CA: What You Need to Know About Small Claims Court
There are certain claims where small claims court may be the appropriate venue, as opposed to superior court. Typically, this includes claims against owners for unpaid assessments, fees and/or fines that do not exceed $5000, which is the limit that a California community association can recover in small claims court. Read More……
What Is A Lien?
Lien. The word gets thrown around like a hot potato on a construction project. Here on the Lien Blog, I use the word constantly, and advocate to credit managers to “file a lien” to protect a company’s rights to payment. But what exactly is a lien? How does it work? What does it do and […]
Pay Up! The Subtle Art of Collecting Arrears
In the tough economic environment of the past few years, many condo owners have faced job losses, pay decreases or just financial uncertainty. Unfortunately, this sometimes leads to owners not paying their common charges. Read More……
Court Tells Board in Foreclosure Case: The Guy Paid. What Else You Want?
Most condominium boards and their managers and attorneys act in what they perceive to be the best interests of their condo associations. But when one Manhattan board in an arrears foreclosure tried to not let the owner pay, and then tried to not tell the court when it did let the owner pay, the judge […]
Condo Boards Take a Stand on Delinquencies
A SUCCESSFUL condominium depends, in large part, on owners’ paying their monthly fees promptly and in full. Delinquencies can mean less money for maintenance and amenities — and draw the ill will of fellow residents. While the sheer size of larger buildings can often blunt their impact on the budget, small buildings with a high […]