i been taking to court for homeowners association > HOA Forum

Unanswered

Active Topics

Forums

Forums > Homeowner Association > HOA Discussions

Subject: i been taking to court for homeowners association

Prev Next

You are not authorized to post a reply.

Page 2 of 2

Author

Messages

MicheleD
(Kentucky)

Posts:1711

06/26/2008 2:51 PM
I may be missing a big piece of this discussion. Since when is accepting "partial" payment an acknowledgment that the "partial" will be considered "payment in full"? We will accept "partial" payments, on a case-by-case basis, under the strict understanding that the full amount is due, and, if the "partials" extend PAST a mutually agreed upon due date for the final payment that additional penalties and fees will apply. No, we're not a credit agency, and it is always on a case-by-case basis. But if the homeowner makes a "habit" out of never having the ungodly amount of $150 A YEAR at the By-law prescribed due date, then we become disinclined to "work with" this homeowner every year. By that I mean as an example, we have one resident who, every year for the past 3 years has "just discovered" the week before the annual assessment is due that her husband has a brain tumor. He discovered one 3 years ago, we worked with her. Gave her almost a year to pay $150.00. He "discovered" one 2 years ago, we worked with her, but shortened the amount of time we allowed her to come up with the money. He "discovered" one this year, and we told her that we could not extend her the "credit period" this year and if the money was not in our bank by the final due date, we would have no choice but to apply the penalties and file a lien. We got the money within 3 days. Go figure.

GlenL
(Ohio)

Posts:1377

06/26/2008 2:58 PM
Also unless you are on disability of some kind get a second job. There is no law that says you can only work 40 out of the 168 hours in a week. Sure it may only be minimum wage and unglamorous but if it gets the bills paid then do it.

TonyM3
(Arizona)

Posts:131

06/26/2008 3:01 PM
We'll extend time but waiving late fees and interest is not a precedent we're willing to set.

EllenS1
(Florida)

Posts:353

06/26/2008 5:15 PM
MicheleD, I admire your HOA for working with an owner re partial payments. But in my opinion anyone that cannot make a $150 annual payment should not be a home owner anywhere least of all in a HOA. They are aware of when it is due and can put away their pennies so they are able to pay. Let's see divide $150 by 365 days a year....

EllenS1
(Florida)

Posts:353

06/26/2008 5:21 PM
MicheleD, These owners need to start thinking of their assessments the same as they do about their mortgages. Some think they can ignore their assessments but need to realize if it goes on they could lose their homes.

BradP
(Kansas)

Posts:1742

06/27/2008 6:12 AM
Posted By EllenS1 on 06/26/2008 5:15 PM MicheleD, I admire your HOA for working with an owner re partial payments. But in my opinion anyone that cannot make a $150 annual payment should not be a home owner anywhere least of all in a HOA. They are aware of when it is due and can put away their pennies so they are able to pay. Let's see divide $150 by 365 days a year.... It is easy for us to sit behind a computer and criticize those who do not pay dues. I wake up every morning and am thankful that I am healthy, have a job and can afford it. Lets be realistic, things in this world are cruel and sometimes not fair and I don't think it is fair of us to lump every single homeowner who is behind in payments into the category of deadbeats... There are many reasons why people get behind: 1. they are deadbeats, they simply do not care 2. They are mad at the HOA and are trying to make a statement the wrong way 3. Their money situation changes, they have to make critical decisions on what bills to pay, like it or not Dues fall to the bottom of the barrel, their situation could have changed for any of the following reasons...loss of job...accident or serious injury that left them unable to work...death of a spouse...serious illness of a family member...hours and pay cut back at work...etc. I look at my situation, I recently had to have shoulder surgery which has put me out for a month, my wife had eye surgery which has put her out for a month, my son has a mouthful of braces and my daughter broke her arm. I am lucky I have good insurance and a job that doesn't require me to do physical labor every single day. I see how easily one could fall into that trap, luckily we won't have huge medical bills but we could have and could be facing this situation. $150 may not seem like much but we also need to remember that gas prices have doubled or tripled in the last 3-4 years. When I bought my home gas was $1.50 four years ago. Now it is $3.79. That means I pay an extra $600 + a year just to get to work in 3 years time. There are a lot of families having to make tough decisions because of this. I think before we cast stones at people we need to understand the entire situation and in this case we don't. This is a huge reason why I am a big proponent of HOA's being more than a business, an HOA is like an extended family and you need to take care of your own if you can, you never know when it will be you!

PatR
(Florida)

Posts:136

06/27/2008 6:37 AM
And that is why we are asking those in need to prove thier need by going to a nonprofit counselor, who may not charge them, TO PROVE A NEED. The business of running a multi-million $$ HOA,is serious. It is not the BOD's job to decide to take partial payments that will effect the other 300 plus homeowners. Our docs clearly state the terms of payment of HOA dues. We, the BOD can not arbitrarily pick and choose what conditions to follow. Try making a partial payment on your mortgate, electric bill or loan....You are going to collections mighty fast. We have to wait almost 100 days to file legal. Our vendors are not waiting 100 days to get paid. This is not a "being mean" or "unkind" decison... I am sure all of us have been it this situation. I know I have, so I gave up the big car, eating out, vacations, and PAY MY BILLS. By not paying your HOA dues, you are being unkind and selfish to your neighbors. Go to a counselor, get on a payment plan, and the lawyers will work with you.

BradP
(Kansas)

Posts:1742

06/27/2008 6:50 AM
Pat...we had this discussion in another thread, so I guess we will have to agree to disagree. The mortgage company, electric company and a bank will work with you. the last thing a bank or a mortgage company wants to do is foreclose or reposses, it is more profitable to work with the loan holder than to just take back the merchandise. You would be suprised how flexible businesses are if you talk to them... As I have stated before to be almost 100K in arrears and not have the cash flow or operating reserve to be able to survive 100 days of a few owners not paying dues shows poor management, so to lecture us on how running a multi-million dollar HOA business is interesting to me. If your vendors are awaiting payment, then accept cash when it is offered to you. Why make them go to a counselor and possibly incur another cost, can't you decide on the merits of what they are telling you? Granted someone may lie but that seems like an unnecessary step.

EllenS1
(Florida)

Posts:353

06/27/2008 8:02 AM
Id like to see mortgage companies escrow HOA assessments the way they escrow for taxes and insurance.

KirkW1
(Texas)

Posts:1145

06/27/2008 7:05 PM
...The business of running a multi-million $$ HOA,is serious. ... ...Try making a partial payment on your mortgate, electric bill or loan....You are going to collections mighty fast. ... I don't know your situation, but multi-million $ HOA seems improbable to me. And it certainly isn't done with fees that are in a range I could live inside. Second, the rest of us can and do get away with partial payments to the electric bill. We call up the company and explain how much we can pay today and when we can pay the rest. And if we are nice and call quickly, this can be stretched over a number of months. Unlike your organization, the electric company's representatives know that life is sometimes rough. I just hope you realize that sending a person to a credit counselor isn't always the nice thing it is cracked up to be. I would personally only go there if I couldn't get enough places to work with me since many ruin your credit in the process since many such organizations are in fact a collection agency and the payments appear as such. One day you may find that you desperately need someone else's assistance. I hope you receive more compassionate result then you have given.

GlenL
(Ohio)

Posts:1377

06/27/2008 9:26 PM
This is totally anecdotal and not relevant to HOA's or the electric company but in 1977-78 the Cincinnati area was struck by a blizzard which incapacitated the area. My parents received their monthly charge bill from Shell Oil with a nice note stating that because the blizzard caused so many people to miss work the previous month they could postpone payment for a month with no late or interest fees. Somehow I don't see that happening today.

MaryA1
(Arizona)

Posts:2248

06/28/2008 8:39 AM
Kirk, You said: "I don't know your situation, but multi-million $ HOA seems improbable to me. And it certainly isn't done with fees that are in a range I could live inside." My assn budget is approx. $800,000; we have 1701 homes and pay $460/yr. Think of the fact that there are many, many assn's with thousands of members. I know of one here in the Phx area that has over 20,000. Multiply that by $300-600/yr. . . easy to reach 1 million or more. Then add to that the amount in reserves; my assn has over 1 million. Yes, many assn's are multi-million dollar corps.

DonnaS
(Tennessee)

Posts:2841

06/28/2008 8:42 AM
I've got a better one. My villa assoc. has a $800,000 budget and there are ONLY 230 homes. Expensive, yes!!! but everything is taken care of and a nice Reserve account.

EllenS1
(Florida)

Posts:353

06/28/2008 5:21 PM
Kirk, It appears that this person totally ignored the fact that hoa assessments were due. I seriously doubt she was taken to court without many, many attempts to resolve the situation. No hoa wants to go to court unless they are backed up against a wall. It has nothing to do with compassion but communication. Of course, we don't know all the facts but only the side of the person being taken to court. There are two sides to every story. Perhaps the hoa would have accepted partial payments, perhaps she has taken advantage before with a song and dance. Perhaps she is not in a financial bind but would rather spend her money on other things.

PatR
(Florida)

Posts:136

06/29/2008 7:54 AM
Kirk: We are an associtaion with a budget of well over 1 million dollars. Our HOA dues arrears were almost $100,000, they are now about $80,000. That is about 3 months worth of bills. Believe it or not, we are out of money, and are hoping people can afford to pay this quarter. Our landscaper alone is $25,000 a month, our Cable bill is over 13,000 a month, our property manager and maintenance is about $10,000 a month. Those who bought here, knew this. And they are now relying on their neighbors to pay the bills, while they lay at the pool and get all the amenities everyone else gets. If that seems fair to the 300 who are paying on time, then I guess I am heartless. I was married to a NYPD officer, and we all know how much they made 20 yrs ago. Somehow, we lived within our means, and never stiffed our creditors. So, yes I have been there.... The electric co. may take partial payments, but they are also a billion $$$ organization, they can afford to do this, we can not. But, they will not do it forever. Since I work with nonprofits, I know what I am talking about..... You can get counseling for little or no payment, and get back on track, and show your creditors "good faith" Once again, it is not the job of the HOA to determine your need, we rely on our legal counsel to determine that. And people have many, many days to get back on track, and to get counseling, before leins are placed on properties. Ruining your credit rating is a thing of the past, creditors set you up to fail, and then send you another card! Check your mailbox... Years ago you would go "bankrupt" and be ruined, now you can walk away, buy another home, and do it all over again... I know someone who just did that, and now lives in a condo on the beach, leaving his last HOA to try to find the money he did not pay. As someone else said...I guess we will have to agress to disagree. At this point, I wish I had any other positon on the BOD but treasurer.

BradP
(Kansas)

Posts:1742

06/29/2008 10:21 AM
Pat: One question, if they don't pay their dues why are they allowed to enjoy the amenities of the association?

GlenL
(Ohio)

Posts:1377

06/29/2008 10:42 PM
I'm with Brad here Pat. In Ohio we can take away a delinquent member's right to use the amenities and their right to vote on Association matters after 30 days; other states require a hearing first. If they're that far behind why hasn't the HOA foreclosed on them?

You are not authorized to post a reply.

Page 2 of 2

Forums > Homeowner Association > HOA Discussions > i been taking to court for homeowners association