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Comparison of Collection Methods
Boards have a duty to collect delinquent assessments. Collections are subject to the one action rule.

  Judicial Foreclosure Non-Judicial Foreclosure Sue for Money Judgment
Remedy Sue for lien foreclosure and money judgment. Association sells property by trustee sale. Sue in small claims or superior court for money judgment.
Benefits If insufficient equity in the property, a deficiency judgment is awarded allowing the association to collect by sale of personal property, wage garnishment, rent levy, bank levy, etc. Less expensive than judicial foreclosure. If no bidders, association acquires property and can rent or sell the property but is obligated to pay senior loans, property taxes, and other expenses Can include fines and penalties. Judgment can be obtained fairly quickly but debt is unsecured until an abstract of judgment is recorded. Collectible through wage garnishment, bank levy, etc.
Problems More expensive process, especially if no equity in property and deficiency judgment turns out to be uncollectable. Recovery is limited to sale of the property. Buyers take subject to right of redemption. Collection efforts on the judgment require more legal expenses and may be uncollectable.

For a list of companies specializing in collections for homeowner associations, see "Collections" in our Business Directory.

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