Delinquent HOA and Condo Association fees are a huge problem down here in sunny South Florida, as I'm sure they are in all parts of the country. I think it's safe to say that most homeowners who stop paying their maintenance fees assume that they have another 3-6 months before the Association puts a lien on the property and starts foreclosure proceedings. Up to now, I would have said that this was a safe assumption.
A few days ago, all homeowners in my very own HOA received a letter giving us notice of a new maintenance fee payment policy. The new policy is that if full payment isn't received by the 10th of the month, the homeowner will receive a notice. If the full payment is not received by the 20th of the month, then the account will be sent for collections and the homeowner will be responsible for all fees and costs associated with the lien and foreclosure. This is serious. They are moving lightning quick. What used to take at least 3 months is now taking 20 days.
I suppose that the Associations are tired of taking such massive hits with delinquent fees, and so they're now doing something about it. The management company that our HOA works with is a big one down here, so it's just a matter of time before other HOA and Condo Associations start doing the same. All it take is for a few attorneys, board members, and management companies to talk to each other, and the trend will take off.
From here on out, I'll be warning all homeowners who are delinquent on their maintenance fees or think they may be in the future that they don't have nearly as much time as we've all been used to. I'm certain that this will come as a huge surprise to many. Is there a delinquency issue in your part of the country? If so, how long does the homeowner usually have before the Association starts foreclosure proceedings?
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Patty Da Silva, CDPEÂ©, RESSÂ®, AHWDÂ®, e-PROÂ®, GREEN, CFS, TRC, RSPS