An HOA can only function properly when homeowners pay their dues and fees on time, and when one homeowner starts to willfully fall behind or refuses to pay fees and the HOA does not take decisive action in response, other homeowners can take the hint that they can skip out on their fees and dues as well with impunity. HOA leaders are, for the most part, individuals interested in promoting community and civility in their HOA, and so taking a hard line on collections is not always in their nature, but doing so is of course important for the collective benefit of the HOA community. Which is why working with an outside HOA lawyer to improve collections can make life easier for the HOA board as well as all those in the community. Here are three reasons why.
An HOA Lawyer Can Take the Heat Off the HOA
By bringing an outside lawyer in to work on behalf of the HOA in making collection efforts, you can take the heat off the HOA board itself by having a third-party who can do the sometimes messy work of getting homeowners to pay their fair share. By leaving the hard job of collections to an outside lawyer, you can promote civility and not let the charged matters of taking legal action affect the relationships between homeowners and the board.
An Experienced Lawyer Can Collect Quickly
Another way that an outside lawyer can promote civility within the HOA community while preserving the financial health of the HOA is by taking quick, decisive action to collect. Rather than having a long, drawn-out affair which builds resentment, drama, and tension over time, an HOA lawyer can zero in on the matter and reach a swift resolution. At Goodman Law Group, we have developed several collection strategies to achieve exactly that, including:
- Campaign 45, a 45-day call intensive that we have developed to increase HOA collections without litigation
- Quick Collect, our method of rapidly focusing in on habitual nonpayers with high-stakes tactics including the threat of foreclosure
- Lucky 13, our 13-step asset investigation procedure which nails down member assets in preparation for placing liens on a delinquent owner’s property
Avoid Illegal Collection Practices
State and federal law place numerous restrictions on how organizations such as HOAs can collect on debts, and failure to comply with these restrictions can end up placing the HOA itself in legal trouble. This can occur through a state enforcement action/penalty or through a lawsuit brought by a homeowner, such as one based on Arizona’s wrongful lien statute. By working with an experienced and knowledgeable outside HOA lawyer, you can ensure that your HOA is taking all efforts to obtain the funds it is owed while staying within the legal requirements in doing so.
Work With a Lawyer in Handling all HOA Legal Matters
At Goodman Law, our sole focus is on meeting the legal needs of HOAs, including creating and implementing HOA policy and responding to homeowner concerns. Contact us today to discuss any legal challenge your HOA is facing.