A Collections Agency in Florida on How to Collect Past Due Assessments

Written by Mitchell Drimmer on . Posted in COLORADO COMMUNITY ASSOCIATION COLLECTIONS, COMMUNITY ASSOCIATION COLLECTIONS, condo collection agency, CONDO COLLECTIONS, FLORIDA COMMUNITY ASSOCIATION COLLECTIONS., hoa collection agency, HOA COLLECTIONS, MARYLAND COMMUNITY ASSOCIATION COLLECTIONS, SNAP COLLECTIONS, VIRGINIA COMMUNITY ASSOCIATION COLLECTIONS, WASHINGTON D.C. COMMUNITY ASSOCIATION COLLECTIONS

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Collecting late assessments can be burdensome for those who must take on this duty, especially if a home lien is in the midst. However, collecting late assessments doesn’t have to feel burdensome if you do so in a consistent, legally binding and effective manner.

SNAP collections agency in Florida is aware and understands that this task is not easy; however we want to ensure that the process is handled correctly and smoothly. We have provided a few tips in order for you to collect your late assessments and be successful in the process.

Communicate in the Right Tone

Communication is key to a successful collection process. When drafting courtesy letters, you must utilize the right tone to motivate delinquent homeowners to make a payment.

These letters should always be business-like in the sense that they should avoid personal attacks and anything that could be misinterpreted by the delinquent homeowner.

Properly worded courtesy letters can be used as an effective tool when collecting past due assessments. We recommend that you write them in a way that motivates a delinquent owner to pay past dues and play on their conscience. Remind them that they have a responsibility to their community.

Four Step Collection Letter Process

This four-step collection letter process gives the delinquent owner a sufficient amount of time and warnings of the consequences to pay past dues. This is the order in which they should take place:

  1. First Courtesy Letter: This letter is typically a reminder that the homeowner’s payment is late and a late fee and late interest as per the associations governing documents will be implemented. The message should be brief and illustrate the past due amount along with the late fee and late interest.
  1. First Warning Letter: This letter is more serious and demanding by reminding the owner of the late past due and late fee. It also includes the consequences the person faces if he or she does not make both payments.  The most significant consequence is that they will be sent into collections.
  1. Second Warning Letter: This letter is worded more strongly than the last letter reminding the homeowner of their past dues and late fees and the consequences of not making the payment.  Illustrate a time line as to when their file will be sent into collections.
  1. Final Warning Letter: This letter is written under the assumption that the community will move forward and send their file into collections and will file a lien to protect the association’s interest.
  1. File Sent Into Collections: This is the last step and last resort if a homeowner still has not paid their late assessment and corresponding late fees and late interest.   This action, albeit unpleasant for the board and the delinquent owner, must be taken as the directors have a fiduciary duty to move forward to collect what is owed to the association.   Collections delayed are collections denied.

 

SNAP Collections is a collections agency in Florida that has been successfully collecting past due assessments since 2006. Our experience and success speaks for itself, as we are now a national company serving condos and HOAs from the East Coast to Colorado. Our proprietary HOA collections platform is designed to be transparent so that boards of directors and management can keep track of the status of their collections files. Contact us today for more information.

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Mitchell Drimmer

Mitch Drimmer and SNAP Collections by Association Financial Services have become synonymous with collections success for community associations. SNAP Collections by AFS has grown to be a national company offering its services nationally. Mitch is a licensed community association manager, real estate broker, and has three collection certifications from various industry organizations. Mitch is on the advisory board of Florida Community Association Professionals (FCAP), a content provider for the FCAP educational program, and frequently writes articles for various publications dealing with issues in community associations.