| |
|
|
Collections Law
Many homeowners associations have difficulty getting their members to pay assessments on a regular and timely basis. These problems can be attributable to the failure of the homeowners association's board to establish clearly stated collections policies and inconsistent enforcement of the collection policies. If a collections policy is put in place correctly, the homeowners association has several powerful tools to ensure the members promptly pay their assessments.
California Civil Code § 1367.1(a) provides the association the power to impose assessment liens on a delinquent member’s property. Recording a proper notice creates a lien and gives the association a security interest in the delinquent member’s lot or unit. Under Civil Code § 1367.1(g), if the member still fails to pay their assessments, the homeowners association has an even more powerful tool: foreclosure. After ensuring that the proper procedures have been followed, the association has the power to initiate non-judicial foreclosure on the delinquent member’s property. Wishing to terminate the foreclosure process, most owners pay their delinquencies promptly after receiving a notice of default. This high response rate is not surprising when homeowners are faced with losing their property.
All of these procedures are very complicated and it is vital to ensure the letter of the law is followed explicitly. Silldorf & Levine, LLP has the experience to help an association set up the proper collections procedures and will also initiate these proceedings against individual homeowners. Silldorf & Levine, LLP stands ready to help your association collect the assessments that it is owed.
 |
|
|
|
