If you have purchased a condominium or property in an HOA, one of the documents you may be required to sign in connection with your loan is a “Condominium Rider or a Planned Unit Development (PUD) Rider.” This rider is an attachment to the document recorded in the land records to secure the note given by the lender for your purchase.  In most states including Florida, it’s called the Mortgage.

One of the most important items contained in the Condominium Rider/PUD Rider is the information regarding the maintenance fees for that particular community association. It is very important to the lenders that these fees are paid because they have an interest in the condominium unit or HOA property.  It is especially important to them if the unit has equity, because the community association has the right to foreclose on the title for non-payment of maintenance fees.

SNAP Collections, The Community Association Collection Specialists, Hires Richard Duer for Midwest Region

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The classic definition of a Zombie Debt simply put “the undead.”  That is to say a person is dead but still has some features of being alive so in essence they are not “totally dead.”   It sounds creepy, and it is creepy but in almost every community association in these United States there lurks “Zombie Debt.”  Zombie Debt is best described as money an association has written off because a bank has foreclosed and there were dues owing that the association never received.  The mistake is that this debt is not dead and much like a Zombie it still lives and can be collected.  So why have not boards of directors and management companies not attempted to collect this Zombie Debt?