Owners not paying dues

We have a community of 79 single family homes in Illinois where we are just responsible for the common areas (2 ponds and a wetland area). We recently had a lawsuit with a homeowner and an above ground pool where the judge sided with the homeowner.

There are 20 homes now not paying their 2010 dues and they are 45 days past due. We have sent 3 letters. We can take them to collections, but that does nothing but cost us money and we can put it on their account, but they really do not have to pay until they move.

What can be done to make them pay? Is putting the names of these 20 homes out to the rest a good idea just to inform them?

Mike,
Mary is probably pointing you in the right direction, she usually does.
I would made an observation that your Board should clearly understand what your documents dictate, and if you have no collection policies in place you add them to your documents. It might be a good idea to look at some other associations documents in the area and see how they do it.
The fact that you have such a large % of owners not paying would indicate that it is the Boards responsibility to figure out why this is. Mary tells you what her association does, think about something like that. It could be that your BOD is not considered strong enough or wise enough to make the collections. It could be that one owner elected not to pay and the others are copy cats. The cause should be determined. It would also demand consideration that your Board hold a town-hall type meeting to explain what is going on, why you know this, what the Board HAS to do by mandate of the documents, how you intend to do it and when you expect to start...............and do it.
No one wants to run their neighbor into debtors prison, make that clear, and you would be well served to explain the Board is always available to discuss specific circumstances, however, the BOARD MUST make efforts to collect these fees and inform the owners in writing and at the meeting the procedures. Notice this meeting properly as required by your documents, run and control the decorum and know what you are talking about and select the member to be spokesman that can do the best job, with the total support of the Board.
Sounds like if you all don't do something to take charge, your problem is going to get worse and when the economic situations improves people are not going to stand up and just had you the cash.
Keep in mind you still have a number of folks paying their fees, try hard to get them to attend the meeting, they will carry the voice of the Board back to their neighbors. Don't publish any lists of delinquents until the information is publish in the court records and even then seriously consider just not making this public information..........not worth it.

Dee,
Excellent post, well said.
Not just because I agree with it, but no matter what your methods of doing this collecting; it is a mandate of the Boards, and at some point you have to consider all the things that Dee posted.

A personal peeve and I'll probably catch hell for saying it, but anymore, just about anything I hear from anyone that handles real estate say, I consider the source seriously. We all form opinions at times on experiences and some of the tactics I saw mortgagors and real estate companies demonstrate during the boom real estate years were questionable to say the least. When I buy a car I don't buy it because of what the salesperson says. So the remarks Dee got from her Management Co may be self serving to some degree.......I say "may".
25 to 30 % seems high for a national average and I expect this figure would reflect the unemployment figure so it is possible in some selected areas

Hi Mike, You want to cover your association and place liens on the properties that are delinquent. Check with your property manager to see what the amount is to legal lien a unit in your state. In California it is $1800. If you have common areas other than those mentioned you will want to restrict those delinquent owners from using them. Check with your CC&R's and see if that is allowed. Common area usually include, pools,gyms,tennis courts,valet aprking and guest parking.

Once the lien is placed you will want to see what you foreclosure options are. It is better to have a paying owner in that unit than a non-paying owner. If the owner has the monies to pay more often than not you will see the check soon after the notice to foreclose is filed. Good luck.