Condo Association Management Blog

I would start by creating a file right now. ALL correspondence and proof of communication, any phone notes, cell phone bills, etc.. are to go in this file. 
Secondly, I would send two letters in the mail TODAY to your former HOA. The first should be a simple directive with minimal details. Something like,  
<<“On 25 October 2010, you received an HOA bill with illegal charges for attorney fees on the property I formerly owned listed above. The opportunity for ABC HOA Board to collect any past due HOA fees, late fees, attorney or collection fees passed on 28 September 2010, when the property sold to ABC Bank/Trustee. If the HOA attorney failed to direct the Board to file a lien on the property, or vice-versa, it is no concern of mine. Again, the opportunity to collect monies due or owed passed at the selling of the property.  
“Furthermore, I expect an immediate and full refund of One Hundred Fifty Dollars ($150.00) that the XYZ HOA is illegally withholding from me. I will pursue immediate collections of this amount, collection fees, and any other retribution allowed by law.”  
So there is no confusion, I am giving the XYZ HOA a one time opportunity to immediately pay me the amount of One Hundred Fifty Dollars ($150.00) or I will pursue collections as described. 
Please make immediate refund to:  
Mr. Former Owner  
000 Old Hard Road 
Timbuktu, FL 00000 
 
Former Owner, former member of XYZ HOA 
Enclosure 
CERTIFIED MAIL Return Receipt Requested 
>> 
 
The Second letter needs to be a ‘Notice’ letter… and more like a bill or official notice. It should simply restate your letter, but more like this:  
<<Mr. Former Owner  
000 Old Hard Road 
Timbuktu, FL 00000 
 
 
21 December 2010 
 
 
XYZ HOA 
000 Harbor Springs  
Timbuktu, FL 00000 
 
 
OBJECT: NOTICE OF DEFAULT FOR REFUND DUE  
 
Dear XYZ HOA, 
This notice is in reference to the following property:  
Single family residence, known as, 000 Old Hard Road, Timbuktu, FL 00000. 
Please be advised that as of today’s date you are in DEFAULT FOR REFUND DUE in the amount of $150.00 plus additional late fees, collection fees, and any other applicable retribution allowed by law.  
As of today’s date, XYZ HOA is OVER SIXTY DAYS PAST DUE for failing to refund all monies owed to me.  
If this breach is not corrected within 30 days of receipt of this notice, or by January 31, 2011, of whichever comes first, I will take further action to protect my rights, which may include attorney and legal fees, additional late fees, and collection proceedings. This notice is made under all applicable laws. All of our rights are reserved under this notice. 
Please provide payment at once to: 
Mr. Former Owner  
000 Old Hard Road 
Timbuktu, FL 00000 
 
 
Additionally, a one time opportunity to waive all late fees is on the table if payment is received in full within 30 days of receipt of this notice, or by January 31, 2011, whichever comes first. 
 
Sincerely, 
 
 
Former Owner, former member of XYZ HOA 
Enclosure 
CERTIFIED MAIL Return Receipt Requested 
 
 
 
This is an attempt to collect a debt.>> 
Mail both letters CERTIFIED MAIL RETURN RECEIPT REQUESTED. I would also put a ‘water mark’ across each letter that says “CERTIFIED MAIL, 1st Notice”. It looks good if you go to court when each letter has an identifying marker like a water mark. Sending it twice, change the watermark to “ …2nd Notice” 
 
I am not an attorney. I have paid attorneys to write letters for me over the years and have learned that I am extremely effective, too. I use attorneys when absolutely necessary. You should not have to need one. You are “proving” to the HOA that you are CYA just by putting it in writing and sending Certified Mail Return Receipt. Keep a copy of all letters in your physical folder with all mailing receipts and returned post cards proving delivery.  
Always think when you write a note that “this note could be used in court and save my fanny big bucks”… so write down all dates, names of whom you talk to and let those people know on the other end that you ARE keeping a RECORD, because this is EVIDENCE admissible in court. I use a very unsophisticated composition book and track my entire day writing down info and phone calls. I doodle, too, so it’s not a big deal if it’s not “a professional” book. It works. :D 
This is what I would do….so hope this helps. 

Think about it this way...you included delinquent HOA fees in your bankruptcy. The HOA is out that money. My question for you is, 'Is the $150 more than your delinquent fees included in the bankruptcy?' You are angry with them because they did not give you money you believe you are owed (and technically you are), but they are supposed to just accept the fact that you are now not responsible for paying HOA fees before that date? Remember this, the HOA consists of your former neighbors, who will eventually have to make up for the dues you did not pay. Do you really think the bankruptcy was fair to them? 
 
Just another way to look at this.

It is common practice in cases such as yours that the Condominium's lawyer monitors the proceedings. This is done to insure that all moneys due to the association are paid. This charge is legal since it was incurred as a result of your bankruptcy action.

Thank you all for your comments, but I still need actual Federal or CA civil codes/case laws that explicitly allow: 1. post-foreclosure legal fee assessment without a court order & 2. collection of a debt prior to invoicing. I'm not here to debate the moral implications of bankruptcy or foreclosure. I just want to know what legal strategies a practicing attorney would use to win my money back if I was a client. And before anyone asks-I called several attorneys in my area, including the one who did my bk, and they all directed me to small claims court. I even offered to pay them a consult fee and they declined. So, is this a violation of the fair debt collection act? Extortion? Theft? Fraud?

The association is correct in billing you for the costs they incurred with their lawyer. Your bankruptcy lead to a foreclosure sale and the lawyer services at th\at closing were required to insure that money owed to the association was paid. You defaulted and are only being charged for costs incurred by the association to insure their claim were properly paid.

I disagree with Charle's assessment. You should not have to pay any fees to the HOA. They should collect them from the new owner. They might not get paid until the new unit sells, but you should NOT be charged once your bankruptcy is discharged. All it takes is a quick, free consultation with YOUR lawyer.

"You defaulted and are only being charged for costs incurred by the association to insure their claim were properly paid." Ok, if that's true, why didn't that foreclosure monitoring fee appear on my first post-bk statement? Clearly, they weren't monitoring my property for foreclosure because if I hadn't brought the foreclosure to their attention, they wouldn't know it took place, and God knows when they would have billed the lender. If I hadn't paid the dues before the trustee sale, they wouldn't have billed me at all. I know this because they sent me a billing statement with the same fee attached as part of the payoff balance due immediately before I filed BK. The next account statement they sent me, the first post-bk one, carried forward the pre-bk balance ABSENT the attorney fees they tacked on when I requested the payoff due. So, I believe they are completely inconsistent in how they apply these fees and only imposed it because they already had cash in hand. It seems like they are acting in bad faith and have skirted some form of due process by witholding my property before even notifying me of a debt, let alone allowing me to contest it.

When the new unit sells, the closing agent will request an Estoppel letter from the HOA. This Estoppel letter will have any accumulated back payments due, late fees, attorney fees, etc... on it. This will have to be paid, usually by the seller, so that there are 'no' encumbrances on the property. I am a real estate agent and own several properties. I've dealt with many foreclosures and have seen many situations similar to this 'on the books'. Original poster, please, just call a good real estate attorney. Be blessed. And move forward with a clear heart and eyes on the good.

Sheri has it exactly right.

VICTORY! After repeatedly requesting proof (the kind you present before a judge and jury), this is the response from the management company: 
 
 
 
"I did contact the attorney to obtain the information that you are requesting. They have reviewed the file. They have advised that the legal fee was actually incurred in May, but they didn't bill the Assn until October (as provided on invoice), as they have stated that they bill after the lender forecloses. 
 
 
 
Since the Board has been advised that the fee was actually incurred in May, I have authorization from the board to also refund the $150.00. Please provide your current mailing address so that the refund check can be sent to you." 
 
I'll let you know if they don't keep their promise!  
 
Thanks to all who read and wrote in to this blog. I hope it helps other people who feel like they're being unjustly fined or charged.

What a Merry Christmas for you! Congratulations! :D

This sounds correct as a matter of the bankruptcy law. If the attorney's charge was asssessed to your ledger before your BK petition, then it would have been discharged in the CH7. If it was after the discharge, then you would be responsible for it and the manager's actions justified. 
 
Sounds like the attorney was straight forward enough about when the charge occured that you are entitled to a refund. 
 
Darron Hay 
 
Assessment Recovery