One of the most challenging and frustrating parts of an HOA’s operations continues to be collecting delinquent assessments. Once the delinquent file has been forwarded to the collection company or the law firm being used by the HOA, it is the industry practice to reject any type of partial payment that is made that will not cover the delinquent assessment amount, which includes interest, late fees, collection costs and more that have accumulated on the homeowner’s account.
This is the approach that also allows for the HOA to foreclose on any delinquent assessment lien only if the amount is at least $1,800, or over 12 months past due. This can be costly for the homeowner, as well as the HOA, and typically it is something that most try to avoid.
Can I Make Partial Payments?
The homeowner is allowed to make any partial payments, but it must first be applied to the actual delinquent assessment that is left. There are options to structure partial payments in a manner that will help to avoid foreclosure of the property, while not paying any of the amount that is necessary to cover the collection costs and fees from the HOA. This creates a more difficult situation for the HOA and in order to avoid this many HOAs accept the partial payments.
While the HOA will still charge a late fee if the payment is not made in full, it can still be beneficial to pay partial payments to avoid complete foreclosure.
National Property Management Group has extensive experience managing HOAs. Our professional staff is knowledgeable about HOA management in Southern California, serving Los Angeles, Santa Clarita, Valencia, and the surrounding areas. We can manage your HOA properties for you so you have less to stress about. We provide innovative property management solutions that outshine our competitors. There is no property too large or too small that we cannot service.
National Property Management Group
25115 Avenue Stanford A300
Valencia, CA 91355
(661) 295-5966
www.npmgonline.com