Adams Stirling PLC


Following are ten tips that will significantly increase your chances of successful recovery of delinquent assessments:

  1.  Make sure your association has an updated collection policy that is distributed at least once a year to the members.
  2.  Start collection activity sooner rather than later. Most associations start serious collection activities when an account is about 45 days overdue.
  3.  Be familiar with all of the different methods of delinquent assessment collection including: nonjudicial foreclosure, judicial foreclosure, small claims court, Superior Court and Suspension of Privileges.
  4.  Always send a pre-lien letter and record an assessment lien (Notice of Delinquent Assessment) pursuant to a lien resolution no matter what method of collection you choose.
  5.  Evaluate each case separately to determine the most effective method of collection for that individual case.
  6.  Use experienced professionals (management companies, trustee services and attorneys) to handle your collections.
  7.  Move ahead as soon as permitted by law with each step in your chosen collection process. Finish what you start!
  8.  If the owner timely requests Internal Dispute Resolution (IDR) or Alternative Dispute Resolution (ADR), schedule it quickly. Many collection actions get bogged down for months or years with IDR and ADR.
  9.  Engage bankruptcy counsel immediately whenever a delinquent owner files bankruptcy.
  10.  "Waiting for the bank to foreclose" is not a viable collection strategy.

Acknowledgement: Thank you to attorney Richard Witkin of Witkin & Neal for these tips.

ASSISTANCE: Associations needing legal assistance can contact us. To stay current with issues affecting community associations, subscribe to the Davis-Stirling Newsletter.

Adams Stirling PLC