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BenJ (Florida)
Posts: 21
Posted:
I became President of a 53 unit HOA in Northwest Florida last year after we essentially ran out of operating funds. As a result, a couple of utility accounts were turned off for lack of payment. The problem was unpaid annual assessments. Thirteen (13) homeowners were past due, most were at least 3 years in arrears. The old BOD resigned and new members were elected. Since then the treasurer and secretary have moved out of the subdivision and for a few months I was performing as President/Treasurer/Secretary.

Through reviewing all payment records I've created annual assessments statements for all homeowners and used those to send out to the delinquent accounts. We now have 4 properties that are delinquent. Property A is three (3) years with the same owner; Property B is four (4) years past due and has just changed owners and the new owner I have not sent a collection letter to---the previous owner sent in a check but I have deposited this check twice and both times it was returned insufficient funds--; Property C is five (5) years past due with the same owner; and Property D is eight (8) years in arrears with three (3) different owners. After advising the homeowners that we might pursue Small Claims Court Action, I've now decided that it would be best to file liens against these properties. Our CCRs provide for a continuing lien for assessments, interest, cost and reasonable attorney's fees.

Questions?
1- Would it be advisable for the HOA to try and file the liens w/o an attorney? I've contacted two attorneys but our funds are extremely limited. I purchased the book "The Law of Florida Homeowners Association" and it has a "Claim of Lien" form that appears appropriate.

2- After searching this forum it is my understanding that a "continuing lien" applies against the lot and therefore the assessments should accrue against it for all years delinquent even if there have been multiple owners. Am I correct in this?

3- I've reviewed "Florida Statue Chapter 95-Limitations" and the best I can ascertain is that there is a 5 year "statue of limitations" on assessments. Has anyone in Florida or anyone familiar with this statue been through this process and can confirm this?

4- As far as the insufficient funds check, what is the appropriate procedure to handle it. Should I send a letter to this individual asking when they will have funds in their account to cover it?

5- How soon should foreclosure start? I've read on the forum that some start as early as 90 days. Does anyone have a general idea of the cost?

I apologize for the long post and thanks in advance for any responses.

JohnM36 (Florida)
Posts: 1
Posted:
Quote:
Posted By BenJ on 02/05/2007 12:13 PM
I became President of a 53 unit HOA in Northwest Florida last year after we essentially ran out of operating funds. As a result, a couple of utility accounts were turned off for lack of payment. The problem was unpaid annual assessments. Thirteen (13) homeowners were past due, most were at least 3 years in arrears. The old BOD resigned and new members were elected. Since then the treasurer and secretary have moved out of the subdivision and for a few months I was performing as President/Treasurer/Secretary.

Through reviewing all payment records I've created annual assessments statements for all homeowners and used those to send out to the delinquent accounts. We now have 4 properties that are delinquent. Property A is three (3) years with the same owner; Property B is four (4) years past due and has just changed owners and the new owner I have not sent a collection letter to---the previous owner sent in a check but I have deposited this check twice and both times it was returned insufficient funds--; Property C is five (5) years past due with the same owner; and Property D is eight (8) years in arrears with three (3) different owners. After advising the homeowners that we might pursue Small Claims Court Action, I've now decided that it would be best to file liens against these properties. Our CCRs provide for a continuing lien for assessments, interest, cost and reasonable attorney's fees.

Questions?
1- Would it be advisable for the HOA to try and file the liens w/o an attorney? I've contacted two attorneys but our funds are extremely limited. I purchased the book "The Law of Florida Homeowners Association" and it has a "Claim of Lien" form that appears appropriate.

2- After searching this forum it is my understanding that a "continuing lien" applies against the lot and therefore the assessments should accrue against it for all years delinquent even if there have been multiple owners. Am I correct in this?

3- I've reviewed "Florida Statue Chapter 95-Limitations" and the best I can ascertain is that there is a 5 year "statue of limitations" on assessments. Has anyone in Florida or anyone familiar with this statue been through this process and can confirm this?

4- As far as the insufficient funds check, what is the appropriate procedure to handle it. Should I send a letter to this individual asking when they will have funds in their account to cover it?

5- How soon should foreclosure start? I've read on the forum that some start as early as 90 days. Does anyone have a general idea of the cost?

I apologize for the long post and thanks in advance for any responses.


GlenL (Ohio)
Posts: 5,491
Posted:
Not that familiar with FL but I would contact the police over the NSF check. If the amount is high enough the issuer could be facing felony charges.

Studies show that 5 out of 4 people have problems with fractions
MicheleD (Kentucky)
Posts: 4,491
Posted:
This is a confusing thread.

The original post is over 2 years old. It had no replies?

Then someone (new) comes in and "quotes" it but doesn't either ask a question or make a comment?

DianeW (Maryland)
Posts: 147
Posted:
John We are in NW Florida as well and facing similar issues. I will be following all replies closely. I did file liens against delinquent owners without the assistance of a lawyer and the fee in our county was $10. That gave us some breathing room. Unfortunately only one owner has come forward to repay and although our CCR's appear to state the lien is good for 10 years, I have been told that the law requires us to either take action to foreclose or file another lien at the end of one year. I do not actually know the correct answer. I do believe we will be "breaking down" and talking to a lawyer within the next month so I should know more concrete answers at that time.

CharlesN2 (Florida)
Posts: 11
Posted:
If you have properly filed a lien, spend a few bucks to go for foreclosure. Might get their attention.
EllenS1 (Florida)
Posts: 1,148
Posted:
Charles,

A "few" bucks to go for foreclosure..get serious. And even if they went that route what to do with the property they now own? The association would be responsible for taxes, insurance, assessments, repairs,mortgage payments and on and on. Lots to think about here. I would certainly file liens and make certain they are kept current.
GlenL (Ohio)
Posts: 5,491
Posted:
Ellen, when an HOA forecloses on someone the HOA doesn't become the owner (check local listings); if successful they win the right to force a sale of the property. The property is sold at sheriffs sale usually for what is owed on the property, the new owner is then responsible for all of that stuff going forward from the date of the sale. Most times the HOA receives little or no money from a foreclosure but it is often worth it to stop the hemorrhaging of funds by the deadbeat and get someone into the property that will hopefully pay. Now the HOA has the right to bid on it (check local listings) and can buy it if they desire. In fact there was an article on the news feed a couple of days ago about a community that is using reserves to buy up distressed units and rent them, hoping to maintain property values and sell them when the market straightens out.

Studies show that 5 out of 4 people have problems with fractions
RobertR1 (South Carolina)
Posts: 5,164
Posted:
BenJ,
What a mess.

One thing is very clear to me. If you, as a sole representative of your community attempt to do anything legally you can not act unilaterally without a court directive. You will have to get a representative voice.

I hope someone more versed in Florida HOA law can shed some light here.

You present a dismal picture, one that is going to cost the association a lot of money, no matter how the attempt to correct past actions.

But, you must be able to represent your community with some kind of authoritative evidence, such as election results, past actions, communication to the owners. Aside from that, it is the responsibility of all owners to enter into this fray. If they don't abide by the agreements they sign on purchase, they do so at great risk to their property. Judges do not look kindly on those that do not accept responsibility. Meaning their inaction is putting their property in peril.

Of course the above includes you also. Best advice I can give you is muster the troops, you are in for a long haul, just a couple of you can do wonders and you can turn this around, but you will lose money doing it.

EllenS1 (Florida)
Posts: 1,148
Posted:
Glen,

And if there ar no bidders who is left holding the property?
EllenS1 (Florida)
Posts: 1,148
Posted:
My reply to Charles after his "it may cost a few bucks" comment was to warn others that it will be more than a few bucks and they should look before they jump into a quagmire. Our association is in it's 3rd year fight with an owner. We have spent over $20,000, have a final judgment and still have not seen one cent on our investment. We have been told that finally the law firm is going to handle the foreclosure for us. It surely has been over a few bucks and the costs keep rising.
GlenL (Ohio)
Posts: 5,491
Posted:
Ellen please understand I am not an attorney nor am I trying to give legal advice. Usually in a foreclosure notice has to be given to the mortgage holder if the HOA forecloses and vise-versa the mortgage holder usually puts in a minimum bid to protect their interest in the property. But if no one bids then I would presume nothing changes.

Studies show that 5 out of 4 people have problems with fractions
MicheleD (Kentucky)
Posts: 4,491
Posted:
Um, hello?

Everyone?

I'm still very confused. . .

BenJ has been long gone for over 2 years.

The poster who resurrected this thread, well, he has only 1 post ever on this forum. . . and didn't even ask a question with the thread he resurrected?

???

RobertR1 (South Carolina)
Posts: 5,164
Posted:
MichaelD,

I didn't notice the date of the Original Post. Although my comments were relevant I think, I doubt had I noticed the date, I would have posted.

I doubt you are confused and the others commenting did so in good faith I imagine. We seem to get these things ever once in a while, and I would hope to notice the original dates in the future.

I think you did us all a favor by bring it to our attention.
MicheleD (Kentucky)
Posts: 4,491
Posted:
But I am confused!

Oh, and your posts, as well as the others' posts, are all pretty relevant, I'm just confused as to how the thread got resurrected, why, and where the person who resurrected it wandered off to!

That doesn't have you scratching your head? It does me mine!

I'm having one of these moments:

RobertR1 (South Carolina)
Posts: 5,164
Posted:
Michele,
I am sure you noticed this has happened in the past, so I doubt it is a mistake of some kind. Who knows what lurks in the heart of evil women? Incidentally Michele, you should let you hair grow out again.
GlenL (Ohio)
Posts: 5,491
Posted:
Women and cats will do as they please, and men and dogs should relax and get used to the idea.

Robert A. Heinlein

Studies show that 5 out of 4 people have problems with fractions
EllenS1 (Florida)
Posts: 1,148
Posted:
Glen,

In the property I cited there is no mortgage so I assume the association would get title to the property?
EllenS1 (Florida)
Posts: 1,148
Posted:
Michele,

I assume it got resurrected because some person at their computer decided to check out pages 2, 3, 4, 5 and saw a topic that interested them.
MicheleD (Kentucky)
Posts: 4,491
Posted:
But. . . . oh nevermind. . . .

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