If left unchecked, delinquencies can become a big problem for your association. It isn’t unusual for someone to miss a payment or two, but when left unaddressed these debts can swell and cause major (but not irreparable) harm to your community. Collecting HOA delinquencies from your neighbors can be an uncomfortable task but allowing dues to go unpaid out of some misguided sense of kindness will only make the problem worse. The accounts receivable of a community association should be available to all owners, and if it gets out that someone isn’t pulling their weight, tensions can rise.
When interviewing a Community Association Collections solution provider for an association, the first question by the board of directors is: “How long is your contract for?” For most vendors there is an beginning and an end to their job, but for a collector this is harder question. It is almost impossible to predict because it depends exclusively on when and how the delinquent unit “settles out.”
Before we discuss the various ways a delinquent unit “settles out” let’s define what the term means. Simply put, when a unit ledger has a zero balance a unit is considered is “settled out.” That is Community Association Collections success.
By: Mitchell Drimmer, CAM, Director of Business Development at Axela-Collections powered by Axela-Technologies Specializing in Condo & HOA Collections
Condo & HOA Collections are specialized so community association lawyers are naturally the best solution… right? Well it ain’t necessarily so. Community Association Attorneys are often focused on other serious matters from condo defects to changing governing documents. Frivolous matters such as slander are on their agenda, because board members will often say things and offense is taken. Once offense taken the lawyer is called. Community Association Lawyers often do not have the tools to cure delinquencies beyond litigation. Such tools as skip-tracing, outbound call centers, credit bureau reporting, and most important the personal touch to collect debt. Condo & HOA Collections require specialists and in these matters the licensed and regulated specialists are collection agencies.