WHAT WILL HAPPEN IN CASE OF DELINQUENT HOA FEES? Right now, you might be living in a neighborhood with a homeowner’s association and paying association dues. Depending on the community where your property is situated, the homeowner’s association fee can be as low as $100 and can go beyond $1,000. Among the other bills we receive regularly, the homeowner’s association dues are obligations that we sometime take for granted and decide to settle them at a later time. At times, the unpaid homeowner’s association dues accumulates into a shocking amount. The HOA has a few methods of collecting association fees. At first, the homeowner’s association will try to collect the unpaid balance using conventional methods like phone calls and notice letters. The collection notice usually contains the total demandable amount, the number of days or months the association fees are late, and the next step the HOA will make if the amount remains unpaid. Sometimes, the HOA may give an alternative payment scheme together with the collection notice to ensure the settlement of the unpaid balance.Some states will soon oblige homeowner’s associations to offer payment schemes to their members who are late in paying their association dues. If you agree to the payment plan being offered, the homeowner’s association may agree to waive the penalties imposed on the late payment.
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Taking away privileges to certain facilities like gym and swimming pools is one of the methods a HOA may use to make the delinquent homeowner pay their balances.
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Some HOA’s go after the lessee to collect the unpaid balance even though it is the owner’s obligation to pay these fees. This may result to a conflict between the landlord and tenant.Some HOA require tenants to sign a document which obliges them to pay up unpaid association fees if the landlord don’t. The HOA, in some regions, are authorized to sue the homeowner with unpaid association dues and get that amount from their take-out pay or even their money in the bank. If you fall behind in your association dues or fees, HOA’s usually have the authority to place a lien on your home. Sometimes, the HOA reports this to the county and records this in their records. A lien on the property will not be an issue not until you try to sell the property, obtain or refinance a mortgage or ultimately when the HOA decrees to foreclose the property. If the homeowner’s association has a lien on your home, it may foreclose the lien as permitted by the law. Some homeowner’s associations have been known to foreclose properties even if the unpaid balance is only a small amount.