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Every HOA homeowner has to pay their HOA dues every month. If they fail to do, the board should pursue the collection of this money. An HOA community relies on the benefits dues are used for. Without prompt payment from homeowners, the board won’t be able to pay for services that the community expects, causing serious issues.
HOA boards can collect late fees on their own or let phoenix hoa management companies do the job for them. Pursuing payment of late fees can be done by giving a friendly reminder of the missed payment, sending an official notice that spells out late fees, or not giving access to community services. But, if the non-paying homeowner still fails to pay the money they owe to the HOA, the association can pursue more drastic action. An HOA manager will consult with an attorney to know the best path to get the money owed to the association. Keep reading to know the options HOAs have when pursuing late HOA fee payments:
Enforcing Rules on Fees and Fines Uniformly
The HOA must enforce the rules on fee collection consistently and fairly. The board should not let some homeowners slide while chasing others who have not paid. Otherwise, they will create conflicts that may undermine their authority. When rules are not enforced on all homeowners, homeowners could file a lawsuit or take other legal actions against the board.
Moreover, fines should be stipulated and consistently enforced throughout the HOA. The board can take further action if a homeowner does not pay the fines.
Collecting the Fees Through Foreclosure
When an HOA has filed a lien against the property of a non-paying homeowner, it can use foreclosure to collect the money owed. But, it is important to keep in mind that some HOA fee debt cannot be paid through foreclosure. Some conditions may apply. For instance, foreclosure may only be allowed if the payment owed is more than a certain amount or when the debt has not been paid for a certain amount of time.
Pursing HOA Fee Payment in Court
The HOA can decide to collects the payment in small claims court if the homeowner continues to refuse to pay the dues. An HOA board member will fill out forms and file them. They, they pay a small fee for the filing. This collection option can be viable when the HOA is pursuing a small amount of money. Getting a judgment can be quick.
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