Community association Collections or for that matter any debt that is delinquent often deteriorates into a bitter cycle of pain. The property owner may fall into hard times and cannot afford their payments due to unforeseen consequences, and an unfortunate process begins. First, there is the courtesy notes from the association and then if that fails to result into a payment the matter is sent to either an attorney or community association collection agency for action.
When your Condo & HOA collections fall short, and you can’t cover all your bills it can be a big problem. Vendors will start to charge late fees and if your association is a late payer they won’t deliver the good service that you have come to expect. Late Payers get poor service. HOA & Condo Delinquencies come at a price and the good paying owners pay the costs. There is not only a cost to pay due to vendor discontent, but the fees required to collect these assessments are expensive as well.
With the economic recovery it would seem that community associations are out of the woods and happy days are here again. Sorry, but no. According to the Community Association Institute (CAI) the average delinquencies nationwide is north of 5% and that is still not acceptable.