Collection Procedures (December 2012)


PROCEDURE DAYS PAST DUE LATE PENALTY FEE COLLECTION COST FEE TOTAL FEES OTHER INFORMATION
If the property owner does not pay their Condominium Maintenance Fee (“Condo Fee”) by the 15th of the month, they are considered delinquent on the 16th and a Delinquency Notice with Collection Fee will be mailed on the 16th of the month 15 $5.00 $20.00 $25.00 Total Due on the 16th of the month: Condo Fee + $25.00
If the property owner does not pay the Condo Fee and other fees within 45 days of the due date, the property owner will be sent by Certified Mail a Demand Letter for payment. 45 $5.00 $30.00 $35.00 The property owner will be charged an additional $30.00 for issuance of the Demand Letter, which will bring the total due in Collection and Late Fees to $60.00. The Demand Letter will request payment within thirty (30) days and will state that the Association may exercise all remedies available, including, but not limited to, (i) reporting to credit bureau; (ii) referral to a collection agency; or (iii) referral of the debt to an attorney for recording of a lien placement; posting for non-judicial foreclosure, unless prohibited by law; and/or suit for judicial foreclosure.
If the property owner does not pay the Condo Fee within 75 days of its due date, the debt may be referred to an attorney for recording of a lien and/ or non-judicial or judicial foreclosure, as the case may be. 75, 105, 125, etc. $5.00 for each 30 days past due $100.00 Property owner will be responsible for payment of all legal fees incurred in addition to the $60.00 accrued Late and Collection fee plus $100.00
Termination of services (i.e. basic cable service, water,) n/a n/a n/a As the Association pays for certain services to this unit, these services may be terminated due to non-payment of assessments
Repeated Delinquencies n/a n/a $100.00 If a property owner has been in arrears for two months on more than one occasion in a Calendar Year, the Association reserves the right to forego the collection notices and refer the debt directly to an attorney for collection (“Direct Referral”) and the property owner will be responsible for a $100.00 Direct Referral Fee together with all legal costs.

Priority of Payment

Any payment received by the Association from a property owner shall be applied to the property owner’s debt in the following order of priority:

  1. Any delinquent assessment;
  2. Any current assessment;
  3. Any attorney fees or third party collection costs incurred by the Association associated solely with assessments or any other charge that could provide the basis for foreclosure;
  4. Any attorney fees incurred by the Association that are not subject to Subdivision (3), above;
  5. Any fines assessed by the Association; and
  6. Any other amount owed to the Association.

If at the time the Association receives a payment from a property owner, the property owner is in default under a payment plan entered into with the Association:

  1. The Association is not required to apply the payment in the order of priority specific by above; and
  2. In applying the payment, a fine assessed by the Association may not be given priority over any other amount owed to the Association.

General Policy

All fees, charges and/or other costs incurred by or charged to the Association in connection with the collection of a property owner’s debt shall be reimbursed by the property owner. Checks returned to the Association for “Not Sufficient Funds” (NSF) or on which payment was stopped shall be assessed a fee of twenty-five dollars ($25.00).

Payment Plan

Any request from a property owner for a payment plan made to the management company of the Association shall be referred to the Board without recommendation for its consideration. The Board in its sole and absolute discretion may approve payment plans if it deems such to be warranted under the circumstances. Additionally, the Board, in its sole and absolute discretion, may postpone or forego collection effort for a reasonable period of time for extenuating circumstances. Property owners may be required to enter into a signed agreement setting forth the payment plan or forbearance. If a property owner does not perform the agreement, the debt may be immediately referred to an attorney for collection. Any postponing of collection efforts and/or forbearance shall not constitute a waiver of any rights of the Association.

Collection of Debt by Attorney

Once a debt is referred to an attorney for collection, all lawful methods of collection may be pursued. If the property owner does not respond to the attorney’s demand letter, by making payment in full or by entering into a payment plan with the Association, the Association may post the property for foreclosure to be sold at public sale in accordance with the governing documents, unless prohibited by law, or the Association may file suit and seek a judicial foreclosure.

Other

This policy may be amended and/or revised by the Board of Directors from time to time with notice to the property owners. Property owners may obtain a copy of the collection policy from the management company of the Association. The policy may also be found under “Financials” on the Association website.

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