Assessment Collections in the Wake of the Huntington Case

By: Christina Baine DeJardin Collecting assessments has never been an easy job.  There are pitfalls lurking around every corner and innumerable requirements waiting to be missed.  To ensure a clean foreclosure process, extreme diligence and care must be taken.  In the wake of the Huntington Continental Townhouse Association, Inc. v. Miner case, this job just [...]

Shaky Ground: Paying the Insurance Deductible after a Damaging Earthquake

By: Johanna R. Deleissegues, Esq. (Originally Published in Fall 2006) Earthquakes can cause more than property damage; they can also cause financial disasters.  After a damaging earthquake, the board will need to call an emergency meeting pursuant to Civil Code section 1363.05(h) and address membership needs and insurance issues, such as paying the insurance deductible [...]

By | June 6th, 2007|Assessments, Maintenance|0 Comments

New Laws Effective January 2003

(originally published Spring 2003) In January 2003, pursuant to Assembly Bill 2289, several new laws came into effect in relation to the collection of delinquent assessments. In addition to the federal Fair Debt Collection Practices Act (FDCPA), Senate Bill 1022, which now adds new Civil Code 1812.700, requires any third party who acts as debt [...]

Assessment Collection Updates: Assembly Bill 2289

- By Stephen M. Kirkland, Esq. (originally published in Summer 2002) As promised, we are providing you an update on the status of Assembly Bill 2289 which seeks to amend various sections of the Davis-Stirling Common Interest Development Act as they relate to collection of assessments. First, the good news: As reported in our last [...]

By | May 25th, 2007|Assessments, Cases & Laws|0 Comments

Pending Legislation Regarding Non-Judicial Foreclosures and Executive Session Meetings

- By Stephen M. Kirkland, Esq. (originally published in Spring 2002) ASSEMBLY BILL 2289 Homeowners' assessments are the lifeblood of any common interest development providing an association with 'income' by which to meet its obligations under the governing documents. However, virtually everyone involved with the management or operation of homeowners associations has encountered the problem [...]

By | May 25th, 2007|Assessments, Cases & Laws, Meetings|0 Comments

Virginia Bankruptcy Court Addresses Homeowner Association’s Motion for Relief from Automatic Stay

- By Laurie S. Poole, Esq., and Jennifer Todd (originally published in Fall 2001) In all bankruptcy cases, the debtor is required to pay his or her homeowner association assessments that become due and owing after the date of the filing of the bankruptcy (also known as "post- petition" assessments). Many times, owners that file [...]

Assessment Refresher of the Month: Pre-Lien Warning Letters

- By Steven R. Napoles, Esq. (originally published in Fall 2001) The pre-lien warning letter is often the last step in an Association's collection efforts before collection is turned over to the attorney. If done properly, the pre-lien letter can be an effective tool to collect from delinquent homeowners without experiencing the time and headaches [...]

Assessment Collection Corner

- By Laurie S. Poole, Esq. & Jennifer Todd (originally published in Summer 2001) The most commonly asked questions by association boards of directors when a homeowner files bankruptcy are (1) what is the difference between Chapter 7 and Chapter 13 bankruptcy cases and (2) how is our association affected. The differences between the two [...]

By | May 25th, 2007|Assessments, Enforcement|0 Comments

What Happens to your Lien when the Senior Forecloses?

(originally published in Fall 2000) Hands up everyone who purchased their home outright with a sack full of money. Assuming you are not Bill Gates, chances are you have not raised your hand. The fact is, most people have to borrow the vast majority of the purchase price for their homes from one of a [...]

By | May 25th, 2007|Assessments, Enforcement|0 Comments

Assessment Collection Corner

(originally published in Summer 2000) One particular problem often arises in enforcing judgments against judgment debtors who are becoming increasingly savvy at hiding their assets or themselves from creditors. This problem stems from the general rule that a judgment may not be enforced after ten years from the date of its entry, unless, of course, [...]

By | May 25th, 2007|Assessments, Cases & Laws|0 Comments

The Bankrupcty Epidemic: Is There Light at the End of the Tunnel?

- By Steven Kirkland, Esq. (originally published in July 1999) With the continuous rise of bankruptcy filings, those of us involved in collection of homeowners’ assessments are all too familiar with the effect a bankruptcy discharge order has on the ability to collect assessments that were delinquent when the homeowner filed for bankruptcy protection. The [...]

By | May 25th, 2007|Assessments, Cases & Laws|0 Comments

Suggestions on How to Streamline Assessment Collections

- By James R. McCormick, Jr., Esq. (originally published in April 1999) A reasonable assessment collections policy is an important tool for boards of directors to utilize in fulfilling the financial obligations of their association. However, many associations still maintain an inefficient system by requiring the full board to make routine decisions and grant routine [...]

By | May 25th, 2007|Assessments, CID News|0 Comments

Prior Recorded Judgment Lien Prevails over a Later-Recorded IRS Tax Lien

- By Laurie F. Masotto, Esq. (originally published in July 1998) A recent U.S. Supreme Court decision could be helpful to homeowner associations in collecting judgments for delinquent assessments in cases where the Internal Revenue Service ("IRS") records a lien against the debtor's real property after an association's judgment lien. In U.S. v. Estate of [...]

By | May 25th, 2007|Assessments, Cases & Laws|0 Comments

Judment Obtained for HOA Assessments is not Avoidable in Bankruptcy

- By Laurie S. Poole, Esq. (originally published in April, 1998) A Florida bankruptcy court has ruled that a judgment obtained for delinquent homeowner association assessments is not the type of lien that can be "set aside" in a bankruptcy proceeding. Section 522(f) of the United States Bankruptcy Code provides that under certain circumstances, certain [...]

By | May 25th, 2007|Assessments, Cases & Laws|0 Comments

Being Fair When Collecting Assessments

- By Laurie F. Masotto, Esq. (originally published in October, 1997) In a recent case, a California Appellate Court determined that homeowners associations are required to comply with the Federal Fair Debt Collection Practices Act ("the Act") when collecting assessments. In Thies v. The Law Offices of William A. Wyman, decided in July, 1997, a [...]

By | May 23rd, 2007|Assessments, Cases & Laws|0 Comments