Association threatens to file a lien. Can do?

[Andrew Smith]

What is the name of your state (only U.S. law)? CA

The company providing property management services to our condo complex (i.e., the association), has sent me a letter via certified mail that threatens to file a lien against my condo unless they receive hundreds of dollars in late fees, so called "processing fees", and interest on these fees within 30 days.

The monthly payment I send to the association has been consistently delayed by 5-10 days for each of the past 5 months, I acknowledge that, but has been received and credited to the account before the end of each month. This payment was increased by the association in 2010 and I'm playing catch up. For each instance, they are tacking on a $32 late fee to the account, adding it all up and are coming after me like this for the fees plus interest. There is also a $200 dollar "special assessment" included in the amount they are attempting to collect here that was charged to all homeowners for something special. There is also a $150 dollar special fee for sending me the letter.

Furthermore, the letter states that if a lien is filed against the condo, then an additional $300 fee will be charged for special processing. Also, they are saying in the letter that if the property is foreclosed on because of this "debt" with the association, then the property may be sold or auctioned without further notice.

Three questions:

1) What the ?
2) Can they really do this, legally?
2) How do I fire back? I need some ammunition here because no reasonable person would just pay out this amount in late fees. It is absurd.

 

[CLJM]

Andrew Smith,

Are you questioning the validity of the charges ?

It appears, the $32.00 is for late fees because you are late with your dues.
The $150.00 appears to be for "processing" the letter, which would be under the guidance of the Association attorney. The $200.00 is for a special assessment. The additional $300.00 would be for "processing" a lien against your condo; again under the guidance of the Association attorney.
The interest charges are tacked on for every month your account is in arrears.

Instead of "firing back", I would confirm your Association documents allow for these fees to be charged, and then contact the Association and work out a payment plan.

And, I am sure you understand, that your payments go to pay the Association's bills----otherwise, they too, are charged late fees.

 

[Antigone*]

What is the name of your state (only U.S. law)? CA

The company providing property management services to our condo complex (i.e., the association), has sent me a letter via certified mail that threatens to file a lien against my condo unless they receive hundreds of dollars in late fees, so called "processing fees", and interest on these fees within 30 days.

The monthly payment I send to the association has been consistently delayed by 5-10 days for each of the past 5 months, I acknowledge that, but has been received and credited to the account before the end of each month. This payment was increased by the association in 2010 and I'm playing catch up. For each instance, they are tacking on a $32 late fee to the account, adding it all up and are coming after me like this for the fees plus interest. There is also a $200 dollar "special assessment" included in the amount they are attempting to collect here that was charged to all homeowners for something special. There is also a $150 dollar special fee for sending me the letter.

Furthermore, the letter states that if a lien is filed against the condo, then an additional $300 fee will be charged for special processing. Also, they are saying in the letter that if the property is foreclosed on because of this "debt" with the association, then the property may be sold or auctioned without further notice.

Three questions:

1) What the ?
2) Can they really do this, legally?
2) How do I fire back? I need some ammunition here because no reasonable person would just pay out this amount in late fees. It is absurd.

Three answers:

1 ~ no real question here
2 ~ Yes, they can legally do this.
3 ~ Pay you association fees. That is the best ammunition for you to fire.

 

[HomeGuru]

OP, read your condo docs. There should be information on how the HOA deals with delinquent owners.

 

[lowens1975]

What is the name of your state (only U.S. law)? CA

The company providing property management services to our condo complex (i.e., the association), has sent me a letter via certified mail that threatens to file a lien against my condo unless they receive hundreds of dollars in late fees, so called "processing fees", and interest on these fees within 30 days.

The monthly payment I send to the association has been consistently delayed by 5-10 days for each of the past 5 months, I acknowledge that, but has been received and credited to the account before the end of each month. This payment was increased by the association in 2010 and I'm playing catch up. For each instance, they are tacking on a $32 late fee to the account, adding it all up and are coming after me like this for the fees plus interest. There is also a $200 dollar "special assessment" included in the amount they are attempting to collect here that was charged to all homeowners for something special. There is also a $150 dollar special fee for sending me the letter.

Furthermore, the letter states that if a lien is filed against the condo, then an additional $300 fee will be charged for special processing. Also, they are saying in the letter that if the property is foreclosed on because of this "debt" with the association, then the property may be sold or auctioned without further notice.

Three questions:

1) What the ?
2) Can they really do this, legally?
2) How do I fire back? I need some ammunition here because no reasonable person would just pay out this amount in late fees. It is absurd.

Yes, if the terms of collection deliquent accounts are written in your condo documents, then you have to pay them.

By your condo docs, you would have received notification of the 'special assessment' and given an accounting as to what the money is to be used for. Usually, this is to build the reserves or make much needed repairs.

Contact the Board or your Property Management firm. Read the newsletter and any other notifications you receive. And attend Board meetings.

Then, take a deep breath, relax, and call the attorney's office. Try to make arrangments that suit both of you to pay it off. Usually, if you're calm and polite, the attorney will work with you.

 

[colourfastt]

Yes, if the terms of collection deliquent accounts are written in your condo documents, then you have to pay them.

By your condo docs, you would have received notification of the 'special assessment' and given an accounting as to what the money is to be used for. Usually, this is to build the reserves or make much needed repairs.

Contact the Board or your Property Management firm. Read the newsletter and any other notifications you receive. And attend Board meetings.

Then, take a deep breath, relax, and call the attorney's office. Try to make arrangments that suit both of you to pay it off. Usually, if you're calm and polite, the attorney will work with you.

And not necessarily the condo docs, state law may also set late fees and interest if the condo docs don't address this (for example, FL does this).

 

[HomeGuru]

So Andrew, what did you find out?

 

[Andrew Smith]

Update on Association question

Thanks to all who replied.

I called the Association billing department this morning to go over the account. Here's what happened:

- The Association charged our community a $300 "Special Assessment" due on Dec 31, 2009. This amount is reflected on each homeowner's account.

- Any payment received after that date was applied to the Special Assessment, and not to the monthly dues, even if the amount paid was the same as the monthly dues.

- I sent an extra $100 in December to be applied towards the Special Assessment.

- Because of this, the account has been "past due" since January 1, 2010, late fees accruing on the monthly dues since then.

Now that I understand how the billing department has been handling my monthly payments, I've prepared this letter and sent it via certified mail today to try to rectify this matter:

--------------------

Re: Account No: XYZ

This is to request a meeting with the Board of Directors to discuss the attached "Account History" for [Address of Condo].

This meeting is intended to rectify the following items in the attached:

1) The 2009 "Special Assessment"
2) Late Charges
3) Past Due Statement Fees
4) Delinquent Processing Fee

Item 1 is partially un-paid. I intend to pay the $200 outstanding on the "2009 Special Assessment" on June 15, 2010.

Items 2, 3, and 4 are billing errors. These items need to be reviewed individually. The Late Charges and the Past Due Statement Fees do not coincide with payments reflected in my bank account records that were made to the Association between January 1, 2010 and May 31, 2010. Item 4 is also an error in the account if items 2 and 3 are found to be billing errors.

This letter is to notify you that items 2, 3, and 4 mentioned above are being disputed. Your letter dated May 20, 2010 titled "Notice of Intent to Record Assessment Lien" is in dispute until we can compare records.

I am available to meet with you to discuss this matter on the following dates: June 03, 2010 11:00 AM, June 07, 2010 11:00 AM, June 14, 2010 11:00 AM, or June 21, 2010 11:00 AM. I will bring my records to the meeting.

--------------------

My question for this forum:

Since the "debt" with the Association is now in dispute and my letter carries an intent to pay the outstanding $200 on June 15 for the 2009 Special Assessment, (my promise to pay), can the Association legally record an assessment lien before we meet to review and compare our records as well as review their billing procedure?

What additional advice can you provide at this point?

 

[HomeGuru]

Thanks to all who replied.

I called the Association billing department this morning to go over the account. Here's what happened:

- The Association charged our community a $300 "Special Assessment" due on Dec 31, 2009. This amount is reflected on each homeowner's account.

- Any payment received after that date was applied to the Special Assessment, and not to the monthly dues, even if the amount paid was the same as the monthly dues.

- I sent an extra $100 in December to be applied towards the Special Assessment.

- Because of this, the account has been "past due" since January 1, 2010, late fees accruing on the monthly dues since then.

Now that I understand how the billing department has been handling my monthly payments, I've prepared this letter and sent it via certified mail today to try to rectify this matter:

--------------------

Re: Account No: XYZ

This is to request a meeting with the Board of Directors to discuss the attached "Account History" for [Address of Condo].

This meeting is intended to rectify the following items in the attached:

1) The 2009 "Special Assessment"
2) Late Charges
3) Past Due Statement Fees
4) Delinquent Processing Fee

Item 1 is partially un-paid. I intend to pay the $200 outstanding on the "2009 Special Assessment" on June 15, 2010.

Items 2, 3, and 4 are billing errors. These items need to be reviewed individually. The Late Charges and the Past Due Statement Fees do not coincide with payments reflected in my bank account records that were made to the Association between January 1, 2010 and May 31, 2010. Item 4 is also an error in the account if items 2 and 3 are found to be billing errors.

This letter is to notify you that items 2, 3, and 4 mentioned above are being disputed. Your letter dated May 20, 2010 titled "Notice of Intent to Record Assessment Lien" is in dispute until we can compare records.

I am available to meet with you to discuss this matter on the following dates: June 03, 2010 11:00 AM, June 07, 2010 11:00 AM, June 14, 2010 11:00 AM, or June 21, 2010 11:00 AM. I will bring my records to the meeting.

--------------------

My question for this forum:

Since the "debt" with the Association is now in dispute and my letter carries an intent to pay the outstanding $200 on June 15 for the 2009 Special Assessment, (my promise to pay), can the Association legally record an assessment lien before we meet to review and compare our records as well as review their billing procedure?

What additional advice can you provide at this point?

**A: the answer is yes.

 

[HuAi]

Andrew,

I serve on the board of my homeowners association. There is some misconceptions here that need to be cleared up.

Your association IS your community. Each of the homeowners belong to it and pool their money for communal repairs. The association usually hires a management company to operate, but all the financial decisions such as special assessments are voted on by the homeowners. At least by those that show up to association meetings. The management company doesnt get to decide financials.

A special assessment is a temporary increase in your condo dues to pay for heating oil, or to make repairs (as an example) it's not a separate payment category. Let me provide a brief example.

Monthly maintenance dues are $100, you have a special assessment of $300 due Dec 31, 2009.

In November 2009 you send in $100, your account has a $0 balance.

In December 2009 you send in $200. Since $400 was due that month, you are now $200 in arrears.

In January, you send in $100. Your account has not been paid back to $0, and a late fee is charged since you haven't paid January's maintenance.

Rinse and repeat every month.

I am afraid you are in the wrong on this one, and to avoid a lien you would be best suited to work out a payment plan with the association attorney.

Since the association would rather get their money than have to start proceedings against you, you may have some leverage if you're willing to give them a lump payment. You could negotiate for them to remove the late fees and interest for example in exchange for immediate payment. I doubt they will remove the attorney fee since that's what they end up paying to the attorney to write the nastygram to you.

 

[HomeGuru]

I like the rinse and repeat advice.