Assessment Collections
Our office handles the collection of Assessments for Homeowner Associations. We have been very successful because we use a combination of judicial action and non-judicial forclosure to force the homeowner to bring his/her account current. The Association may forclose on a unit non judicially, and this forclosure is similar to the forclosure of a deed of trust. The problem with this kind of forclosure is that there are very few people who want to purchase condominiums at a forclosure sale of assessment liens. This is because the property is still subject to the existing deed of trust or other financing and subject to delinquent taxes.
We forclose on the property if there is sufficient equity. However, we also seek a money judgment against the homeowners and this judgment can be enforced in a number of ways directly against the homeowner. (i.e. garnishing wages, levying on bank accounts, etc.) Although some homeowners may walk away from their units, most are not happy about having a judgment entered against them. Although a personal judgment can be eliminated by a bankruptcy, the homeowner will remain liable for assessments that accrue after they file bankruptcy if the homeowner continues to reside in or rent out the condominium unit.