• Be Reasonable! This is our primary recommendation in all matters.
• Begin collection actions early while the outstanding amount is manageable.
• Take an incremental approach. Start with friendly reminders or personal contact, follow up with stronger reminders, and provide as much information as possible.
• Allow owners to negotiate payment plans.
• Follow due-process procedures. Give delinquent owners ample notice and provide an opportunity for them to be heard.
• Comply with the Fair Debt Collection Practices Act throughout the process.

There is no specific point at which a community association should have its attorney file a lien against the property. It depends on various factors. Generally, these factors concern the individual circumstances of the case.

For example, an association may have little choice but to file a lien if the owner has failed to respond to repeated attempts by the association to collect the debt. If the delinquent amount has become quite large, it may pose a significant liability for the association.

Nobody wants to foreclose on a home, but community associations rely on the lien and foreclosure process to collect unpaid assessments. For associations, it’s often the only leverage they have to ensure fairness and shared responsibility. Placing a lien on property, with the ability to foreclose, is typically enough impetus to get delinquent residents to meet their financial obligations – without removing the owner from his or her home.

Foreclosure should always be used as a last resort, applied only after other measures have failed. People occasionally face financial hardship – a lost job, for instance – and in those cases many community associations do work with homeowners to develop deferred or special payment plans.