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ClaudiaH
(Kentucky)
Posts:27
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| 05/15/2008 4:56 AM |
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I'm the treasurer and filed a lien on a homeowner who has failed to pay his annual dues. He's a chronic late payer by several months. I don't know if he just gets a kick out of exhausting previous treasurers who gave him late notice after late notice, if he's just lazy, or if he's trying to make a point. Regardless, I have a life to lead and am not the least bit interested in spending a year chasing anyone. I successfully invoiced, collected and deposited 99 annual dues. Our restrictions and bylaws don't even require the treasurer to send out invoices, late notices or notice of intent to lien. They merely state that homeowners are required to pay their dues by Feb 1 each year and if they aren't paid, they are subject to late fees, liens and legal costs to collect the dues. That being said, I sent him his invoice by certified mail (since he's chronically late) and he refused to sign for it. I then emailed his wife with a copy of it, and she said they would pay shortly. Then I sent 2 late notices and an Intent to File a Lien notice before I filed the lien.
Here's where I made a mistake.
Our restrictions state that homeowners will have to pay $25 as soon as their dues are late, PLUS $25 for each month they are late. I put in the lien, that the homeowner has to pay the dues plus the $25 for each month they are late, but forgot to add in the $25 flat fee that is due just for being late.
I'm wondering if he's going to catch this, and pay everything but the $25 which I failed to include in the lien. If he does that, then what?? Do I release the original lien and then refile another lien for $25?? It's really no skin off our nose to do that, as I'm filing the liens myself and it costs $26 to do so, which the homeowner has to pay.
Or, do I just keep the original lien on until he pays in full?
Either way, I'm not for cutting this guy any slack. I'm not making exceptions to the rule for anyone regarding dues. Too much liability at stake to do that with the other homeowners. And he's such a chronic late payer, that everyone in the neighborhood knows it. Which by the way, is pretty irritating. Out of 100 homeowners, 1 guy never pays. Just so dumb.
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MicheleD
(Kentucky)
Posts:1427
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| 05/15/2008 5:27 AM |
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Our liens contain a statement to contact the treasurer for the payoff amount, since interest and other fees can, and do, accumulate even after a lien is filed.
So just make a note on the file jacket, and each month that he goes without paying the lien, continue to add the appropriate interest and/or fees so that when he finally does come knocking to pay it off you have an accurate amount to provide as the lien pay-off amount.
I sometimes file a lien in May and the payoff comes in June. On the other hand, I have liens that are now about 2 or 3 years old. So the fees continue to add up.
Hope that helps, but it's always best to check with the laws in your area.
Contact a local legal aid or court clerk and see what they say generally happens on lien payoffs.
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ClaudiaH
(Kentucky)
Posts:27
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| 05/15/2008 5:33 AM |
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The way I worded the lien, future fees are taken into consideration. I just failed to include the one-time "late" fee of $25, which is included in the restrictions.
But I will check with the local laws. I don't want to pay an attorney to answer this question. We're trying not to spend more of the homeowner's monies on this one guy. |
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MicheleD
(Kentucky)
Posts:1427
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| 05/15/2008 5:43 AM |
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Then you are covered. You add all outstanding fees at the time you are requested a payoff amount. That would include the other $25 fee.
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ClaudiaH
(Kentucky)
Posts:27
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| 05/15/2008 5:52 AM |
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What I meant was... it states that for the lien to be removed, the homeowner will have to pay"
Annual due amount, plus cost to file the lien, plus cost to remove the lien, plus $25 for each 30 days past due. It does not say "all future fees". I made it specific for the homeowner's sake, but left out the flat $25 fee for being late. Next time I'll leave it wide open, dues plus fees, period. |
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GlenL
(Ohio)
Posts:1195
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| 05/15/2008 9:55 AM |
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The Association may have to eat the first $25.00 if he catches it or you could re-file the lien which would cost. Or you could file another lien for the $25.00 which would make him pay an extra fee to have both released.
We had one of these too in spite turning our collections over to an attorney which would significantly increased the fees he owed; he would take it right up to the foreclosure point. What finally stopped it (so far) was the BOD passed a resolution doubling the late fee to $70.00 for repeat offenders.
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GloriaM
(North Carolina)
Posts:768
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| 05/15/2008 12:55 PM |
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Claudia:
Before he can even pay he has to ask the association for a reinstatement quotation. Like Michelle stated after filing a lien, fees pile up and the original lien is now more then when it was recorded.
When he asks for the reinstatement quote, place the additional fees outlining what they are. |
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