|DELINQUENCY PROCEDURES||COLLECTION PROCEDURES|
|a) Owner Verification||a) Title Search|
|b) Balance Verification||b) Lien filed (if necessary)|
|c) Reminder Notice||c) Non-judicial Foreclosure|
|d) Second Reminder Notice||d) Judicial Foreclosure|
|e) Certified Demand Letter||e) Small Claims Court|
On July 30, 2007, a welcome letter was sent to any homeowner with an outstanding debt to verify owners and balances received from previous management. On or about August 15, 2007 a statement of the account balance will be sent once again to any owner with a balance due of $50.00 or more. A late fee will not be assessed for the months of July or August due to the transition.
A second statement of the account balance will be sent on or about Auguts 31, 2007 to all owners who are 30 days delinquent with a balance due of $5.00 or more requesting immediate payment.
A certified demand letter notifying the owner that the account may be reported to the Credit Bureau was sent when an account is 45 to 60 days delinquent. This letter also threatens a personal lawsuit in Small Claims Court and/or fiing of a lien and non-judicial foreclosure by the TANGLEGROVE TOWNHOUSE CONDOMINIUM ASSOCIATION if the account is not paid within 30 days. After the expiration of 30 days, we will begin legally pursuing delinquent homeowners in an effort to collect monies owed.
Once the account is referred to the Association’s attorney for foreclosure, a 30-day Notice of Default will be sent. If there is no response, the attorney will follow with a 21-day Posting for Foreclosure and Notice of Sale, that will result in an actual foreclosure sale that is held on the First Tuesday of each month, if the balance is not paid.
|PROCEDURE||ESTIMATED NUMBER OF DAYS PAST DUE||CHARGE TO ACCT||OTHER INFORMATION|
|First monthly statement||15||$5.00||Reminder of the balance due $50.00 or more|
|Second monthly statement||30||none||Reminder of the balance due $5.00 or more|
|Certified demand for payment||45||none||States that we may be reporting to credit bureau and/or will refer the account to legal counsel for non-judicial foreclosure. Requests payment within 30 days|
|Refer to atty for lien/foreclosure||75
|legal fees incurred will be billed to account as invoiced from law firm||30 Day Notice of Default
Posting for Foreclosure (21 days prior to f/c)
Trustees Sale (First Tuesday of each month)
Homeowner will be responsible for payment of all legal fees incurred.
|Eviction / collection of rents||135||varies||Will pursue eviction of owner and/or collection of rents once foreclosure occurs.|
|Termination of services (i.e. Basic cable service, water, electricity)||varies||As the Association pays for certain services to this unit, these services may be terminated due to non-payment of assessments.|
|Repeated delinquencies||If a homeowner is continuously delinquent, the Association reserves the right to bypass collection notices and refer the account directly to the law firm for foreclosure.|