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CherylT
(Arizona)
Posts:11
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| 11/15/2007 8:10 PM |
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| hello, I am the president of our HOA and as everyone knows it's hard to locate ,at times, the owner when they rent the property and don't pay the fees. After billing for over a year and the bills were returned ( apparently the renters didn't forward to the owner) finally I found the owner because they put a rental sign on the front lawn and apparently she was the realtor for her own property. Well of course she acted like she didn't know there was a HOA (what a joke) and she gave me the address of a mangement company where she wanted us to send the bills to. Well after billing the mang co. they sent in the payment minus the accrued late fees and interest. According to our CC&R's , it states that even if they don't receive a bill they are still responsible for payments and any extra fees accrued. What I really want to know is, how would you guys handle the billing for the late fees and interest??? They were also late on this last payment by a few days, so another late fees will be added, they just crossed off the late fee and interest on the statement they sent back with payment like this is relieving them of their client's obligation. The int and late fees are about 300 or so, would this warrant a lein if I rebill for the fees and they ignore again?? Everyone else in the community pays late fees. Should interest be added to late fees and interest?? Somebody let me know what will you do in this situation? I'm in Arizona. |
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RogerB
(Colorado)
Posts:4686
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| 11/15/2007 8:59 PM |
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| Cheryl, we would apply payments toward the oldest outstanding receivables first and come forward. This would include past due assessments, late charges, and interest (if applicable). Then a detailed statement would be mailed for the balance due while continuing to charge assessments, late charges and interest. Filing a lien would occur based on the Rules and Regulations for delinquent assessments which has been provided in advance to all owners. |
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HaroldS
(Arizona)
Posts:904
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| 11/15/2007 9:33 PM |
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Sorry Roger. Arizona statutes are very specific on applying payments:
"Notwithstanding any provision in the community documents or in any contract between the association and a management company, unless the member directs otherwise, all payments received on a member's account shall be applied first to any unpaid assessments, for unpaid charges for late payment of those assessments, for reasonable collection fees and for unpaid attorney fees and costs incurred with respect to those assessments, in that order, with any remaining amounts applied next to other unpaid fees, charges and monetary penalties or interest and late charges on any of those amounts." IN THAT ORDER.
This is specifically to prevent applying payments as you suggested to other fees and thus allowing the assessment to go unpaid. That is because as you know we can foreclose for non payment of assessments, but cannot foreclose on unpaid interest, penalties, etc. I would say the real estate management company knows Arizona law. Cheryl needs to study Arizona Revised Statutes because as noted above the infamous "notwithstanding" negates whatever her documents say about this situation. Harold |
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RogerB
(Colorado)
Posts:4686
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| 11/16/2007 8:37 AM |
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| Thanks Harold, that provides good info for AZ HOAs. I responded to the question "What do you do?" and in CO we do it differently. Perhaps AZ needs to consider changing to provide a more effective means to collect delinquent amounts. |
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HaroldS
(Arizona)
Posts:904
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| 11/16/2007 9:56 AM |
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The Arizona law is protecting the homeowners from losing their homes when they are paying the assessment. Why should they loose their home for late fees, interest, etc.? The theory is that the HOA is supposed to be operating on assessments - not depending on late charges, interest, etc. etc. Why is it so important then that these fees be paid before the assessment? Doing so only makes the assessment delinquent.
The other charges if legitimate can be collected by garnishment, collection agencies, or bundled and a judgment gotten. That judgment can then be applied as a lien - which cannot be foreclosed but will be there when the home is sold.
I'm sure the rental agency knows the law, and is crossing out the other fees to emphasise that the payment should be applied to the assessment. To apply that payment otherwise is inviting a law suit. Harold |
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