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Subject: Delinquent Dues
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Author Messages
JamieB3
(Ohio)

Posts:7


02/09/2020 12:59 PM  
HELLO,
IM VERY NEW TO HOATALK AND ALSO NEW TO THE ROLE OF HOA SECRETARY. ONE OF MY JOB DUTIES IS COLLECTIONS ON PAST DUE ACCOUNTS. OUR COMMUNITY JUST RECENTLY TOOK OVER OWNERSHIP FROM A PROPERTY MANAGEMENT COMPANY WHO ALMOST PUT US BANKRUPT. I CURRENTLY HAVE TWO HOMEOWNERS WHO HAVE AGREED TO A "PROMISE TO pAY" CONTRACT. MY ISSUE IS I CAN NOT FIND ONE SUITABLE FOR HOA DUES. IF ANYONE HAS ANY INFORMATION ON WHERE TO FIND A CONTRACT OR WHAT NEEDS TO BE INCLUDED I WOULD GREATLY APPRECIATE IT!!!
WalterH4
(Indiana)

Posts:119


02/09/2020 1:33 PM  
Why not just google "payment plan contract" and then take one as a template, and customize it for the HOA. A payment plan is a payment plan, is it not? Lay out the terms, and the consequences (fees) if the terms aren't met. Then just execute according to the contract. Google turns up dozens of examples. But I'm not a lawyer, so maybe I'm missing something big here.

SheliaH
(Indiana)

Posts:3058


02/09/2020 2:53 PM  
You can put one together, although I do agree with Walter that there are examples around the internet that you can adapt. You should run it by an attorney to make sure everything's covered.

Oh, and make sure there's language that also requires the home reimburse the association for all collections costs incurred in collecting the debt - like court costs and attorney's fees.

A few more thoughts from one who spent 5 years as treasurer wrestling with this stuff:

Your treasurer should be assisting you with keeping track of delinquencies because he/she is supposed to be watching the money. You two can bash out how to do this if your documents don't have any instructions

Don't let the agreement to last a year - six months is best, depending on car behind the owner is. If the homeowner needs an extension, he/she should make a request in writing and provide written verifiable proof of financial hardship.

The board's decision to extend, offer or accept a payment plan is final

I think it's a good idea to require electronic payments. You get your money faster - and can go after the owner for sure fraud if the electronic payments are returned. You don't have to do it immediately, but can consider it If it happens more than once.

If any part of the agreement isn't followed, the board can cancel the agreement and then the account over to the attorney for collection

The owner must keep you informed of any changes that can affect your ability to collect, e.g. filing for bankruptcy.

That's some of the language we put in our agreements. If some of this sounded harsh, that's because we had so many we had to play hardball.
GeorgeS21
(Florida)

Posts:2314


02/09/2020 3:21 PM  
We bill in November, due in December, grace period till end of January, start fees and interest after that, and send to attorney for collection on 1 August.

Any legal costs, fees, and interest get added up until paid.

We will accept any amount at any time, but fees and interest apply on any unpaid balance until paid.

The purpose of all of this is to motivate property owners to pay in time.

It’s a business.

JamieB3
(Ohio)

Posts:7


02/09/2020 4:32 PM  
Thank you everyone for your input! I have spent 2 days looking online. Found a couple that pertain to what I need but I figured I would ask here as well.
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