Non-judicial assessment collection is a process, and following are the major milestones. It is important to remember that there are a number of things that can occur during collection that may modify or change the process.
For example, the homeowner may request a payment plan, which the Board may agree to. Then, the homeowner may default on the payment plan. Or, the homeowner may request alternative dispute resolution, internal dispute resolution or meet and confer process, mediation or binding arbitration. These events may delay or even curtail the entire collection process.
There is always the chance that the senior lender will foreclose first, or the homeowner may file some form of bankruptcy, which will stop the entire process unless the association chooses to seek relief from the bankruptcy default.
Milestones in the Collection Process:
- Assessments become delinquent pursuant to the state Civil Code and the association's governing documents.
- The owner receives from the board or managing agent one or more notices of delinquency pursuant to the association's delinquency policy.
- The delinquent account is referred to the association's attorney for collection.
- Grant deed and property description are acquired; ownership is verified.
- A final demand and notice of intent to lien are sent by certified mail.
- The lien is prepared and recorded.
- A copy of the lien is sent to the owner by certified mail.
- A 30-day statutory waiting period ensues, and a Trustee Sales Guarantee is obtained.
- A Notice of Default is prepared and recorded.
- A copy of the Notice of Default is sent to all interested parties by certified mail.
- A statutory 3-month waiting period ensues.
- A Notice of Sale is prepared and recorded.
- The property is sold to the highest bidder or reverts to the association to satisfy delinquent assessments and costs of collection.
- While foreclosure is not ALS' objective, if the homeowner will not pay, it is inevitable.
Follow this link for a detailed discussion of the Non-Judicial Collection Process.
Still have questions? Feel free to contact ALS at 800-825-5510 or
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