Love them or hate them there are definite advantages to being part of a HOA (Home-Owner’s Association). They provide care and maintenance to an area requiring lawn-mowing, access to a pool in common, landscaping and just generally keeping an area neat and tidy. Unfortunately, in today’s economy it is becoming more common for owners to become negligent in paying their dues, as request after request for the owners to settle their outstanding monthly commitments falls on seemingly deaf ears.
Failure to collect the monthly or quarterly HOA and master community service charges makes it difficult for a home-owner’s association and master community to carry out all of their duties. A failure of one home-owner to pay his/her commitment will impact every home-owner who is part of the HOA. This is not a happy situation to be in, and needs to be rectified as quickly and efficiently as possible.
The economy is a concern for everyone and this can make the task of collecting the regular service charges an even more challenging prospect, as it usually involves a further financial commitment on the part of the HOA to recover what is owed. In an effort to save on the costs of recovering debts, many managers of a HOA choose to take matters into their own hands. Without the firsthand knowledge required to navigate the legal minefield for such matters, this can often end up making the problem much worse.
It pays to understand that the home-owner may be going through a rough financial patch, in which case the debt collection on outstanding fees may be a fruitless effort. It is very difficult to get money out of those who simply don’t have it. In some instances it may be more amicable to negotiate a payment plan with the owner and waive any late fees that have been applied so as to make things easier on his/her situation. It may also help to get the owner on a HOA’s side, rather than allow the owner to become a hostile debtor.
Of course, there are those who are just going to be difficult and the full force of the law may need to be used for any hope of debt collection. One such avenue for the HOA may be to bring in the services of a debt collection agency with the required experience and resources to handle these delicate matters. Many law firms also have experienced attorneys who have the legal understanding to handle HOA outstanding fees collections as efficiently and as quickly as possible.