Property Owners Associations (POAs) have various responsibilities, including collecting payments from members for different purposes. Missing these requirements can lead to debt or assessments accumulating over time with additional fines and charges. If the problem continues despite collection efforts, POAs may have to take specific measures and conduct foreclosure.
Still, it is not a simple process that happens overnight. Despite unpaid assessments, the law protects property owners from unlawful liens and foreclosures. Before placing liens on a property, the association should issue notices properly.
Requirements before filing assessment liens
When deciding to foreclose a property, associations are responsible for contacting the owner and giving them sufficient notice about what is happening. An initial notice, sent through email or as a written letter, kicks off the process, notifying the owner about their unpaid assessments. After 30 days, the POA can follow up with a second notice provided through certified mail.
After sending these two notices, the POA can file the assessment lien. However, they can only do so 90 days after sending the second notice. This period is necessary to give the owner enough time to address their overdue fees before the POA processes the lien. If the association fails to comply with these notices and their timelines, the entire process can become unlawful, risking legal issues involving the liens and foreclosure.
Complying with legal requirements and guidelines
Aside from procedural requirements, POAs may also need to conduct other assessment-related needs, such as collecting overdue payments and establishing repayment plans. These matters may also have legal restrictions that vary based on the situation. To perform these responsibilities appropriately, seeking legal counsel could be helpful. Experienced guidance can help associations fulfill their duties adequately and lawfully.