[emile48]

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We have a lot of delinquent owners in our HOA and my board is having trouble collecting. Any advice?

[nattacked385]

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Times have been tough lately. Maybe you can offer payment plans to lighten the load? Works for us.

[ikirutheowl]

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There are a number of actions you can take against delinquent owners. Fines and suspending privileges are good places to start. But many HOAs usually place liens and start foreclosure proceedings.

[anthony_s2]

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I understand liens and foreclosures are the common recourses but I kind of feel bad for the delinquent owners. Apart from payment plans (which they can’t pay anyway), are there any other solutions?

[faewin45]

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Feeling bad is normal, but I think you should separate personal feelings from professional work. Homeowners associations only function when everyone pays their dues. Allowing a few homeowners to go on default isn’t fair for others who keep up-to-date with their dues. Members agree to pay dues when they buy into the community. It’s not your fault they can’t pay. They either settle their unpaid dues or face the music.

[claireh10]

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You can file a lawsuit in small claims court. Maybe a judge will allow you to shave their wages until they repay their debt to the association.

[h8oa]

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HOAS ARE TERRIBLE ORGANIZATIONS AND DESERVE TO BE CLOSED DOWN FOREVER DUES ARE A SCAM DON’T PAY THEM

[chrstphr58]

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I don’t recommend a lawsuit since it’s so much trouble. A lien would be better. Let the lien sit for about six months to a year and then start foreclosure. That should get them to pay.

[joecffv]

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I was told by a management company that if you try to foreclose on a condo owner they will just declare bankruptcy and it is not worth it .. i do not understand why an association can’t get their money by selling a foreclosure ????

[ikirutheowl]

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Yes, it’s true. When an owner files for bankruptcy, the association can no longer collect on the assessments due to pre-filing. But bankruptcy doesn’t mean owners can stop paying their assessments forever.

When the association receives the notice of bankruptcy from the owner, your attorney should respond with a ledger of all amounts due to the association. This is the pre-petition ledger. Then you must start maintaining a post-petition ledger, which is a ledger of all amounts due to the association after the owner files for bankruptcy. If the owner again fails to pay these, you can ask the bankruptcy court to lift the automatic stay and let the association resume collection efforts.

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