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Condo Associations - How To Make Your Own HOA Demand Letter

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In today's environment, most condo associations and HOA's are dealing with delinquent condo owners and late or unpaid condo fees.  Condo Associations must get proactive and help themselves get paid.  Sending an official 30-Day Notice of Demand for your Condo Association or HOA is the most impactful, yet cost-effective way to make delinquent owners pay. Traditionally, about 30%-60% of delinquent owners pay, in full, upon receipt of initial demand and collections letters.

The first step can be to send a payment demand letter, which the condo association board can do themselves.  This letter put the delinquent owner on notice that the association has the right to place a lien against the condo owner after a certain amount of days.  Each state is different; make sure to look up your state's law on liens. 

Here is what is normally included in an HOA payment demand letter.  This is the most impactful, yet cost-effective way to make delinquent owners pay.  Delinquent member notified of outstanding balance and Association's right to take legal action in 30 days in the form of a lien.

  • Delinquent member notified of outstanding balance and Association's right to take legal action in 30 days in the form of a lien.
  • Letter also notifies delinquent owner that the association is considering a 3rd party collection option.
  • Notification strongly recommends delinquent member directly rectifies outstanding debt with association prior to end of 30 day window.

See a sample HOA payment demand letter from our download section


Comments

How much can the board/mamangement company charge for owner for such demand letters. Can they change the price of the demands with out notifing the community? Our use to be 25 dollars now its 75 all the sudden. NEW TO THE COMMUNITY!
Posted @ Wednesday, January 13, 2010 8:41 AM by amanda_amburgey@yahoo.com
that sounds expensive. hoa collection demand letters are nothing more then pre-made boiler-plate letters. I think there is a sample demand letter on this site you can just use yourself
Posted @ Saturday, January 23, 2010 5:34 AM by Evan
The problem with writing your own demand letters is there is nothing you can put in the letter that is not already known to the client. Different in every state- the homeowners know you can foreclose or will have the attorney file a lien/judgment, but there is nothing you can put in the letters or legally do that will affect them right now. Any if you are in a state that most properties are upside down, then those traditional legal options are going to be a waste of the associations money. However collection agencies can use the threat of placing the debt on their credit bureaus which is an immediate consequence if they do not pay.
Posted @ Friday, April 09, 2010 10:38 AM by Todd French
Nice to see that the Demand letter we sent has just about been completely fulfilled by our Board. The mold shouldn't be an issue because the Board has finally fixed the leak problems over three storage lockers - by ripping out the decks above and replacing the rotted membranes, plywood and deck boards. Thereby having to remove the drywall that was damaged/moldy in the ceilings below. Insulation has to be put back into the locker ceilings and will be held up by new drywall - so all in all, the Board who has consistenly "dictated" they were not responsible for repairing the damage, just the leaks in the the storage areas (limited common area)now must fix it. Eating crow I believe is what it's called. If they don't - we have huge holes in our fireproof ceiling in the garage and the city inspectors will be over to cite the board to repair. Hope we don't have to go that far (again). Lesson learned - the Board may make it difficult and refuse to do repairs on a timely basis - but we all pay our taxes and the city ordinances control. And to our Board at the Oaks, a battle well fought to keep the owners at bay. Attorney fees???? Should be paid out of the Boards pockets - repairs are repairs and they should be made no a timely basis, not due to a Demand Letter.
Posted @ Monday, April 12, 2010 8:31 AM by Maryann Manion
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