HOA And Condo Collections Questions Answered

Written by Mitchell Drimmer on . Posted in COMMUNITY ASSOCIATION COLLECTIONS, condo collection agency, CONDO COLLECTIONS, CONDOS, FLORIDA COMMUNITY ASSOCIATION COLLECTIONS., hoa and condo financials, hoa collection agency, HOA COLLECTIONS, SNAP COLLECTIONS, snap collections reports to credit bureaus, Uncategorized

Yikes,Mr. Collections Man:

our community association has some members who are not paying their maintenance fees and our attorney bills are already more than what is owed. Is there no other way to collect these fees without spending more money.

Signed,

Sleepless in Saratoga

Dear Sleepless in Saratoga:

Of course there is a way to recover your money but your board of directors needs to think out of the box.  Your attorney is working hard but all that he/she can do is put a lien on the unit and if you want to become landlords foreclose on the unit and recover your money from rental revenue.  Maybe, that is not such a good idea because if a bank forecloses  its possible that all you will recover is the safe harbor amount of the lesser of 12 months or 1% you will be out of a lot of legal fees.

Stupid is as Stupid does…A Peek Into Condo World

Written by Mitchell Drimmer on . Posted in COMMUNITY ASSOCIATION COLLECTIONS, Condo capital improvement loans, condo collection agency, CONDO COLLECTIONS, CONDOS, hoa and condo financials, HOA Capital Improvement loans, hoa collection agency, HOA COLLECTIONS, Hoa loans, SNAP COLLECTIONS, Uncategorized, VIRGINIA COMMUNITY ASSOCIATION COLLECTIONS, Virginia condo collections, WASHINGTON D.C. COMMUNITY ASSOCIATION COLLECTIONS

In my many travels in condo world I have seen some pretty poor practices by boards of directors and management companies but the prize for the most egregious acts I have ever seen has to go to a nice luxury building in Aventura, Florida of which I am very familiar with.

Condo and HOA Financial Issues…Renter Escrow Deposits

Written by Mitchell Drimmer on . Posted in COMMUNITY ASSOCIATION COLLECTIONS, community association loans, condo collection agency, CONDOS, Escrow Accounts Condos, FLORIDA COMMUNITY ASSOCIATION COLLECTIONS., hoa and condo financials, hoa collection agency, MARYLAND COMMUNITY ASSOCIATION COLLECTIONS, maryland hoa collections, SNAP COLLECTIONS, Uncategorized, VIRGINIA COMMUNITY ASSOCIATION COLLECTIONS, WASHINGTON D.C. COMMUNITY ASSOCIATION COLLECTIONS

A condo that will remain anonymous has a unique problem that may not at first glance seem like a dilemma but let me assure it is. They have over three hundred and fifty thousand dollars in the bank. The bad news is that money is in an escrow account from renters in case their tenancy results in damages or fines. That’s a one thousand dollar deposit for each and every renter. It is interesting to note that the building only has three hundred units and let’s say it has 70% renters (210 apartments) as occupants. That means there is at least one hundred and forty thousand dollars that should have been refunded to the renters (minus damages) but never were, and are sitting in the association’s bank account.

HOA COLLECTIONS … Fourth DCA Decision Slams HOAs

Written by Mitchell Drimmer on . Posted in COMMUNITY ASSOCIATION COLLECTIONS, condo collection agency, CONDO COLLECTIONS, FLORIDA COMMUNITY ASSOCIATION COLLECTIONS., hoa collection agency, HOA COLLECTIONS, HOAS, reporting to credit bureaus, SNAP COLLECTIONS, snap collections reports to credit bureaus, Uncategorized

In a decision by the Fourth District Court of Appeal, Of the State Of Florida Homeowner Associations have been handed another setback regarding HOA collections of past due maintenance fees. On May 27, 2015 the court rendered a decision in the Appeal in Pudlit 2 Joint Venture, LLP v. Westwood Gardens HOA, Inc., Case No. 4D14-1385 that declares that if a delinquent unit is purchased by a subsequent purchaser and the association has this specific language in its governing documents (“the personal obligation for delinquent assessments shall not pass to his successors in title unless expressly assumed by them”),  then the new owner is NOT jointly and severally liable to pay the accrued delinquent fees.