If you’ve ever been to a Mammoth game you know the chant….GET IN THE BOX! Being in the penalty box is punishment during a Mammoth game for not following the rules but in your association you may need to get out of the box in order to collect unpaid assessments. What do we mean by that? We mean looking at ways to secure owner payment other than suspending voting rights, recording liens and filing a lawsuit. Here are a 5 “out of the box” collection ideas that you may want to try if you are having difficulty collecting assessments:
- Make it easy – Associations that allow owners to pay via numerous methods have higher overall collection rates. Some of the ways include ACH, credit card, checks, cash, in person, online, or by snail mail. Take the money any way you can get it and at any time or place you can get it.
- Offer amnesty – An amnesty program can offer owners a one-time “relief” from late fees, fines, attorney fees, interest, etc. on their account if they pay their principal balance in full by a certain date.
- Give prizes – Consider holding drawings for prizes for residents who pay their assessments on time. They can be as simple as a gift certificate to a local restaurant, a TV or a trip to a beach. Make sure that you’ve budgeted responsibly and adequately for the prizes and that you publicize the prize opportunities and winners.
- Use the foreclosure tool – With equity improving for many owners, using foreclosure as a tool can be an effective way of getting owners to pay. If you want us to evaluate a property for foreclosure, fill out this evaluation form and email it to us.
- Sell your lien rights – Third party investors may be interested in purchasing your lien rights in order to redeem a property in foreclosure. This can get you payment in full or even a premium on outstanding balances. Check out this checklist for when selling a lien is a good option.
Please do not hesitate to contact a Altitude Community Law attorney at 303.432.9999 with questions about collection options.