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Subject: Late Fees on payment plan.
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TracyT2
(Colorado)

Posts:2


07/10/2019 10:55 AM  
Does your management company continue to charge late fees to homeowners if they are on a payment plan for their dues and paying as agreed to get caught up? If so, does the homeowner then get a credit at the end of the agreement once all payments have been made as agreed?
CjC


Posts:186


07/10/2019 1:08 PM  
Lets say that our HOA fee is 1200 a year. You can pay 1200 all upfront or do month at lets say 105 a month. Do you don't pay a late fee but interest is added to monthly amount.
BillH10
(Texas)

Posts:374


07/10/2019 1:12 PM  
Tracy, I know Texas is not Colorado and your statue statutes may be different.

However, in Texas, the HOA may not continue to charge late payment fees/charges if the account is on an approved payment plan and is making payments as agreed. We can charge interest on the past due balance as well as a small administrative fee for managing the payment plan.
MelissaP1
(Alabama)

Posts:8300


07/10/2019 3:51 PM  
We liened at 6 months unless you agreed to a payment plan. If you did, then we would waive the $20 late fee and interest. However, if you failed in next 6 months to catch up, then those would go on the lien. Our payment plan was to agree to pay half the dues which were $50 while you could not afford to make regular dues. The we would ask to make month and 1/2 to actually "catch up" when it was possible.

Former HOA President
JohnC46
(South Carolina)

Posts:8436


07/10/2019 5:26 PM  
Posted By TracyT2 on 07/10/2019 10:55 AM
Does your management company continue to charge late fees to homeowners if they are on a payment plan for their dues and paying as agreed to get caught up? If so, does the homeowner then get a credit at the end of the agreement once all payments have been made as agreed?




We all vary so best ask your MC. Myself, I would want some form of financial punishment for those that did not pay on time but are willing to setup a payment plan.
JohnC46
(South Carolina)

Posts:8436


07/10/2019 5:31 PM  
Posted By JohnC46 on 07/10/2019 5:26 PM
Posted By TracyT2 on 07/10/2019 10:55 AM
Does your management company continue to charge late fees to homeowners if they are on a payment plan for their dues and paying as agreed to get caught up? If so, does the homeowner then get a credit at the end of the agreement once all payments have been made as agreed?




We all vary so best ask your MC. Myself, I would want some form of financial punishment for those that did not pay on time but are willing to setup a payment plan.




ADD ON

Just because you agree to pay us what you owe us, there has to be some penalty for stiffing us so long.
SamE2
(New Jersey)

Posts:120


07/11/2019 5:06 AM  
First off I don't think the management company charges anything the BOD charge the fees the management company collects it and administers it. We charge fees on payment plans and do not credit the money to the person who paid them when they catch up. Our concern is if we did that what would stop everyone from setting up payment plans. I don't see the fees so much as a punishment for being late as I do a deterrent for others being late.
JohnC46
(South Carolina)

Posts:8436


07/11/2019 8:16 AM  
Posted By SamE2 on 07/11/2019 5:06 AM
First off I don't think the management company charges anything the BOD charge the fees the management company collects it and administers it. We charge fees on payment plans and do not credit the money to the person who paid them when they catch up. Our concern is if we did that what would stop everyone from setting up payment plans. I don't see the fees so much as a punishment for being late as I do a deterrent for others being late.




Well said.
BillH10
(Texas)

Posts:374


07/11/2019 9:11 AM  
As a management company, we include late payment matters in the schedule of fees we charge our clients. There are additional expenses incurred by the management company when payment is not timely made as we have to begin the collection process immediately.

The late payment expense charged the property owner is intended to recoup the expenses incurred by and billed by the management company to the Association.
KellyM3
(North Carolina)

Posts:1396


07/11/2019 9:14 AM  
Posted By TracyT2 on 07/10/2019 10:55 AM
Does your management company continue to charge late fees to homeowners if they are on a payment plan for their dues and paying as agreed to get caught up? If so, does the homeowner then get a credit at the end of the agreement once all payments have been made as agreed?




The payer would not be delinquent if they enter an agreed-upon repayment plan and then kept the account current and made the payments. The late fees accrued prior to entering the payment plan would be part of the amount due.
SheliaH
(Indiana)

Posts:2565


07/11/2019 10:14 AM  
Once the payment plan starts, we won't charge late fees as long as the homeowner pays according to its terms (paying on time is one of them). If they're late even once, the board can choose to pitch the whole thing and send the account to the attorney for collection, and this is written in the payment plan agreement. In practice, I never saw this happen because most people would let us know in advance if something weird would delay payment for a day or two. The folks who promised to pay and didn't (and didn't explain why) were another story...
PestY
(South Carolina)

Posts:32


07/11/2019 10:42 AM  
Posted By SamE2 on 07/11/2019 5:06 AM
First off I don't think the management company charges anything the BOD charge the fees the management company collects it and administers it. We charge fees on payment plans and do not credit the money to the person who paid them when they catch up. Our concern is if we did that what would stop everyone from setting up payment plans. I don't see the fees so much as a punishment for being late as I do a deterrent for others being late.






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