|
|
Collections:
We Make a Hard Job Easier
Timely
collection of assessments is critical to the successful operation
of your association. Owners who aren’t paying their share create
ill-will and resentment among the other homeowners, deny the association
the financial resources needed to keep up with routine maintenance
and repairs, and prevent the establishment of a reserve account for
improvements or replacements to the property.
They're
Your Neighbors
We
know that collecting delinquent assessments is a difficult job. After
all, these delinquent owners are also your neighbors. You don’t
want to confront people at the mailbox or the pool to pay their assessments.
But managers and board members can’t ignore the problem.
With
our experience in association law, we understand the mindset of delinquent
homeowners. We know that, when it’s time to pay the bills, assessments
are often low on the priority list. Our goal is to move assessments
to the top of the priority list and to impress upon owners that paying
assessments is critical to keeping their home.
Getting
the Job Done
When it
comes to collecting delinquent assessments, boards want quick, effective
results and want to be kept informed. In short, you want results that
you can measure. That’s where we work for you:
- Within 48
hours of receiving a new matter, we send a demand letter to the
delinquent owner to begin the process of collecting the delinquent
assessments.
- You receive
monthly reports, free of charge, setting forth the status of all
legal matters which we are handling. Of course, you are also welcome
to call us anytime to get a verbal update as to the status of
your association’s collection matters, again, free of charge.
- You receive,
on a monthly basis, a free accounting report providing a detailed
itemization of the total monies recovered from specific homeowners
involved in the collection process. In essence, it’s a monthly
report card so that you can determine how well we are collecting
your delinquent accounts.
- We assist
you with preventative measures such as establishing a written
“collections policy” which clarifies your procedures
and outlines the penalties and steps taken to recover delinquent
assessments. Our experience has shown that a written policy reduces
the number of delinquent homeowners.
Making
it Affordable to the Association
Many
associations are hesitant to aggressively pursue delinquent assessments
because of the cost in legal fees. But we know that, by law, homeowners
who fall behind in paying assessments must also pay all legal fees
and costs necessary for collections. We recognize that community associations
are, by their very nature, organizations which must exist and perform
within the constraints of a limited annual budget. Yet, because the
accomplishment of a legal objective can, at times, require a period
of time before a final resolution is affected, a problem can arise
if an Association is required to pay for the legal services before
the result is obtained. In an effort to address this concern, under
some of our billing arrangements, we allow you to postpone your payment
of the legal fees invoiced until sums are recovered from the individual
responsible for the debt. Here’s what that means to you:
- In most
instances, you are not required to pay for the legal fees invoiced
by us in collecting outstanding maintenance assessments until
payments are collected from the debtor.
- The delay
in performing a legal task that you may have experienced in the
past should be reduced, and the likelihood of your objective being
accomplished in a timely and cost effective matter is enhanced.
- Your community’s
operating fund is not depleted by upfront legal costs; but, rather,
payment of legal costs is more closely aligned to when you receive
money from the collection process.
- You can
retain more of your community funds and devote more of your budget
towards projects and services which enhance your community.
Enforcing
Your Collection Policy Through Common Respect
Our clients
are generally pleased with the manner in which we treat homeowners
who have failed to live up to the expectations established by their
community. In short, we are dedicated to enforcing your policies through
common respect. Here’s what that means to your homeowners:
- Clear
Notice. Each letter sent to a homeowner sets forth,
in plain terms, a detailed itemization of the amount owed or the
specific action which must be accomplished, the time period for
response before the next step in the legal process is taken, the
legal activities which will occur if the homeowner fails to communicate,
as well as the legal costs that will be incurred by the individual
if the next step in the legal process is required.
- Payment
Agreements. Every letter sent to a homeowner explains
to the individual how they can remedy the situation, remove themselves
from the legal process, and offers to them an opportunity to pay
all costs owed to an association through a monthly payout agreement.
- Special
Situations addressed. Homeowners who have unique
situations (i.e., fixed incomes, severe family illness, recent
unemployment, etc.) are brought to the attention of the governing
Board to allow them the opportunity to take into account their
special situations in proposing solutions to these matters.
- Personal
Involvement. If a homeowner has a dispute with
regard to what they believe are the facts of their particular
case, they are routinely invited to meet with the attorney handling
their matter at our office so that they can review their written
file as well as the backup documentation leading up to the dispute.
These meetings with the homeowner are done free of charge in an
effort to more effectively educate a homeowner regarding the facts
of a matter and, hopefully, cause an efficient, cost effective
resolution of the dispute.
- Homeowners
are not “Nickled and Dimed.” The amount
set forth in the last correspondence received by a homeowner is,
assuming the homeowner complies with the terms of their payment
agreement, the total out of pocket cost to the homeowner regardless
of the legal work required after a payout agreement is executed.
|
|
|
|
|
|
|
NORTH|Law