Tag Archives: board of directors

AN AFTER CHRISTMAS GIFT FOR 2015 AND BEYOND

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Here is a bit of a gift for you and all those who truly want to do what’s best for their homeowners! I know it’s after Christmas, but this was worth the wait!

Our friend over at HoaBoard.org, Mr. Shelton Lee, has a FREE eBook entitled “HOW TO SELF MANAGE YOUR HOA” that helps Boards break-free from advisors who may not have homeowner’s best interests at heart. As Shelton says it, “I’ve grown tired of feeling like the people I’m paying to serve our homeowners are more interested in what’s in their own best interest, than what’s in ours.” So he put into writing all of the top information his Board uses to break-free from ‘those advisors’ who were hurting their homeowners.

It’s short, but a well-written essay, and we encourage you to download it (for free) and to share it with any and all board members you may know who are looking for some answers! You’ll find it at HoaBoard.org.

Understanding what’s really going on behind the scenes is the first step toward eradicating it – and here’s your chance to keep your ‘advisors’ in line (or get rid of them if you want to).

Author, Mr. Shelton Lee

HoaBoard.org

The ‘Ounce of Prevention’ is More Neighborly Than the ‘Pound of Cure’

breakfree

By Richard Slater

It’s amazing how fast legal fees and collection costs pile up for homeowners delinquent on their HOA dues. I saw court documents the other day where a homeowner is suing a collection agency for potentially violating the Federal Fair Debt Collection Practices Act. Those documents reflect that the homeowner owed $80 to their HOA. The collection agency sent one letter stating that the cost to cure the delinquency was now an additional $300. In addition, the letter stated that if the homeowner didn’t pay the now $380 within ten days, the collection agency would file a lien that would increase the balance due by another $325 plus sundry clerical costs. If this isn’t the ‘pound of cure’, I don’t know what is. Only two questions could possibly enter a reasonable person’s mind; how on earth is this collection agency making any money, and what kind of stationary are they using that it costs $300 to send one letter?

The unfortunate thing is that this case isn’t even close to exemplifying how bad it gets for some families. I sat with an attorney from one state’s free legal aid service who told me of a case where over one hundred thousand dollars in legal fees had accrued in proceedings over a single family dwelling. Granted, that’s the extreme – but grievances abound between those two examples. The truth is, there are people in the HOA industry who are absolutely making merchandise of homeowner’s lives.

So here we are… teaching people that the ‘ounce of prevention’ is more neighborly than the ‘pound of cure’. Let’s face it – collections aren’t fun, but upholding the rules in a fair and equitable fashion is the fabric of any society – even a micro-society, like an HOA. And when some homeowner is paying their dues and keeping the common interests safe, clean, and functioning – and someone isn’t paying their dues (who is able to), well fair is fair. Something has to be done.

But isn’t it time we realize that when a family goes from paying their obligations to not paying them that something has changed; and perhaps we should not bury them with legal and collection costs that double and even triple the burden they’re under? How much easier would it be for the family mentioned above to pay the $80 they owe, plus $20 – instead of paying an additional $300, or even $625? Sometimes it’s time to stop doing things the good old fashioned way… because sometimes, there’s nothing good about it.

Richard Slater is Director of HOA Operations for NCSPlus (RecoverHoaDues.com) and can be reached at  rslater@recoverhoadues.com
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