Monday, January 5, 2015

A no-fines delinquency collection policy

Richard White, an attorney we presume, would require that any owner who does not pay on time receive a collection letter when the unit is 10 days delinquent. Another letter would be sent when the account is 30 days delinquent and a certified final letter sent when the account is 40 days delinquent.

If the owner does not pay, the matter needs to be turned over to an attorney to file a lien. If the lien is not paid within 30 to 60 days the attorney should be instructed to start foreclosure. If it is properly filed, then the courts should have a final foreclosure notice in 60 to 90 days. If your board or your attorney is sitting on the paperwork any longer, I consider them negligent in their duties.

A caveat: If you haven’t had collection activities for one year against a delinquent owner, then the board cannot collect that delinquent account.

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