Inevitably owners get behind on their assessments. Not just three, four or even five months, but ten, eleven or 12 months delinquent. Despite the association’s best efforts to get the owner to pay, there is no money coming in. Then what? Generally, an association has several ways to collect unpaid assessments: lien the property andGo to Resource
Foreclosure Resources
Does your community have properties that are owned by banks? Unfortunately, bank owned properties have become commonplace in many communities due to the high number of foreclosures that continue to take place in today’s economy. These homes are likely vacant, with covenant violations (weeds and other maintenance issues come to mind), and most likely, assessmentsGo to Resource
A homeowner association’s ability to foreclose on a property for failing to pay assessments is a potent tool in collections. Unfortunately, many associations do not utilize this avenue of collections due to a belief that the association would become obligated to pay the first mortgage on the property if it ended up owning the foreclosedGo to Resource
Ownership in the form of time share estates is common in vacation areas, such as the beautiful mountains of Colorado. Owners of time shares or interval interests (“time shares”) must pay assessments on their interests as do full, fee simple owners of units. Given the current economy, many time shares are now worth less thanGo to Resource
The typical process for collecting unpaid assessments is to proceed with a lawsuit after an owner has failed to respond to a thirty-day demand letter. This route, although successful in many cases, does not always provide the desired results. Associations are therefore looking to alternative methods of collecting unpaid assessments. Judicial foreclosures and receiverships areGo to Resource