Condo Association Management Blog

3 Steps To Collecting Delinquent Condo Fees

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Most HOAs and Condo Associations have some level of difficulty collecting delinquent or late condo fees and assessments.  There are 3 actions a Condo Association or HOA can take to collect.

Send Notice of Demand for Collection (NOD). Although Notices of Demand are often sent by lawyers, they can be sent directly by the association. This document put the delinquent owner on notice and informs them of the HOA or Condo Association's right to place a lien on the property. 

Record Liens. Liens alert lenders, purchasers and title companies of a "cloud on title" that needs to be cleared up. For this reason, long standing delinquencies often get cleared up at refinancing or sale closings. A recorded lien improves the odds of collecting even if an owner files bankruptcy or a lender forecloses. If the lender forecloses, the association can collect if there are surplus proceeds. If there is no lien and the property is sold, the association has no claim.

Let the Attorney Handle It. After several rounds of written notices and 60 days have passed, turn the matter over to the HOA's attorney. Cease communications with the debtor. Referring all calls to the attorney will expedite the process.

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