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MarkW2
(Texas)
Posts:2
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| 06/26/2008 3:05 PM |
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Hello all. I handle the invoicing and collecting of annual HOA dues for a small member (84 households) Home Owner's Association in Texas.
We have 3 members who are 3 years in arrears and 1 member 2 years in arrears. Liens are already in place. Letters have been sent by the HOA (original invoice, reminder and one past due) and now an attorney I've contacted has sent a demand letter as well. Still no response or payment.
From here the Board is reluctant to take the homeowners to court basically because they have never taken anyone to court before.
Anyone have some real-time experiences to share when dealing with collecting HOA dues in Texas? If there are other methods I'd appreciate hearing them. Thanks in advance. |
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BrianB
(California)
Posts:1742
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| 06/26/2008 4:00 PM |
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once you pass the threat stage, there's nothing left in your bag of tricks except court. court will allow you to garnish wages, which is nice, and very noticeable to the person in arrears.
there's not much other feasible option once they ignore a lawyer except claims court or ignoring it. |
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EllenS1
(Florida)
Posts:353
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| 06/26/2008 4:58 PM |
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MarkW2,
I can't believe you allowed members to go two or three years and this is still not settled. No wonder they ignore all your attempts at collection. We pay quarterly and after two quarters the owners are sent an intent to lien and then we do it. We also bill them for the attorney letter that was sent out and if they do not pay after the letter they are also billed for the cost of preparing and filing the lien. The problem with letting things go beyond that makes it more difficult for the homeowner to become current. I have no knowledge of Texas law but it seems to me that you need a good attorney. A demand letter which is not followed through means next to nothing. It's like a barking dog..You need an experienced attorney in HOA law who lets the owners know that when you prevail they will not only be made to pay their late assessments and all costs of attempting to collect the late payments but that interest is running from the date of their not paying.
The worst part of this is that owners talk to each other and are told "they never do anything about it" so look forward to more owners not paying if you do not take strong action immediately. |
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KirkW1
(Texas)
Posts:1145
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| 06/26/2008 7:43 PM |
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First, you don't need to go to court in Texas. If you have the lien in place, then your attorney can initiate nonjudicial foreclosure on the property. The homeowner then gets a certified letter from your attorney telling them that on a certain date at a certain time their house will be put up for auction. Your association should have a representative to bid the amount owed.
In talking with our management company they told us that they have never seen a house actually make it to auction. Either the homeowner comes up with the money, or they call the attorney in a panic. (They may call the management company, but they are referred back to the attorney. Once in his/her court it needs to stay there.) Under the developer they typically were required to put up at lest half with a payment plan to catch up by year's end.
As a note, our current policy (put in place by the developer) is to start the process after two year's dues are owed. (We pay annually.)
You should have an attorney familiar with HOAs and HOA collection. |
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DavidT3
(Texas)
Posts:18
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| 06/26/2008 9:46 PM |
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Mark,
Similar situation in DFW area. Took office last month. House had not paid dues for 3 years (owed $450). Nothing was done in the past to collect on these dues.......a few letters were sent, but no documentation of letters being received, other steps, etc. New board came together first part of May and offered grace period.......if you paid your dues by July 1, ALL late charges would be dropped. With late charges dating back to 2006, that brings it to $900. Secretary went to them on May 10th and talked to them in person about this.....at the time, they said they will take care of it. Sent a reminder invoice on June 5th (with delivery notification for documentation) that told them of the deadline once again and the amount due of they had not paid by July 1st. Even offered to discuss a payment plan.......bottom line is they had to make an effort to get this taken care of. Called on Monday and left a message (call has not been returned)stating that this case would be turned over to a lawyer next week.....they needed to contact a board member to make some sort of arrangements.
Appointment set up on Monday with lawyer to file the lien......lien will be for $900, filing charges, charges to remove the lien, attorney costs and interest from past three years (probably talking about $1500 +). I know that legal action is the last thing you want to do to a neighbor, but you knew that was a possibility when you took the post. If a person is a year or so late, I can see it being an oversight, etc. But two years +, they are just spitting in the face of the HOA and steps have to be taken. Hate to say it, but when homeowners see that these steps have been taken, very few will be late in their payments in the future.
Hope this helps.......filing a lien is the last thing I want to do in my first month as HOA President, but there is no other choice in this matter. Let the lawyers take care of things from here on out.
D |
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