Homeowners who fail to pay their assessments are an unfortunate reality of modern community association life. The burden of delinquent assessments affects everyone in the community. Associations have difficulty working within their budgets and dues-paying members may be deprived of necessary services or increased assessments to make-up the shortfall. At Kriger Law Firm, APC we are all too familiar with the seriousness of delinquencies, and the disruption they can cause. Our experienced attorneys, collection paralegals and collectors work closely with managers and boards to assist in the collection of delinquent assessments from both current and former owners. It is always a good idea to start the collection process under the statutory framework established in the Davis-Stirling Common Interest Development Act for the enforcement of an assessment lien.
Once the assessment lien is recorded, the association is considered a secured creditor for purposes of a bankruptcy, although the assessment lien is always secondary to the bank’s mortgage lien.
Assessments are the life-blood of the association, and yet the collection of delinquent assessments can be frustrating for board members and their managers. We help associations navigate through the legal mine-fields and intricacies of assessment collections, while also recognizing the value of payment plans and compromises which benefit both the association and its delinquent members. We help boards implement simple and straightforward collections policies which can be enforced promptly and consistently, while allowing flexibility when necessary.