Filing a Lawsuit Some states allow an HOA to sue a homeowner for unpaid amounts. Often, HOAs pursue delinquent assessments in small claims court. The HOA files its lawsuit and will either get a default judgment (an automatic win because you don’t respond to the suit) or prevail in its case.

How do I collect HOA dues?

How To Collect Delinquent HOA Dues and Fees

1. Follow your bylaws. Check your association’s bylaws and governing documents for collection procedures and act on them to the letter.
2. Change your bylaws.
3. Work with the owner.
4. File a lien.
5. Go to small claims court.
6. Related Articles.

How does a homeowners association collect debt?

If you own a home that is part of a homeowners’ association (HOA) and fall behind in your HOA dues or assessments, the HOA will likely first try to collect the debt using traditional methods, like phone calls and letters.

How often do Hoa’s have to collect dues?

The HOA board computes the annual budget each year and splits the expenses among all homeowners in the community. Some associations collect on a monthly basis, while others do it in a yearly lump sum. Because HOA dues are the lifeblood of any association, every HOA must have a collection policy in place.

Is the Hoa a debt under the FDCPA?

There has been much debate as to whether the HOA fees constitute a “debt” under the Act. However, many courts have determined that because homeowners have an obligation to pay money to the association and because the obligation arises from the purchasing of the property, HOA fees are a consumer debt within the definition of the FDCPA.

Who is obligated to pay HOA fees?

Plaintiffs [homeowners] are consumers within the purview of the statute as they are natural people and are obligated to pay their homeowners association fees because of a covenant that runs with their property.