|For the first time since since 2007, when the condos were first occupied, there are zero, no, nada, units that are over 30 days late in paying their monthly assessments. |
Back Story - Monthly assessments are the lifeblood of association communities. Without these fees the lawn would not be mowed, the pool would not be cleaned, the property would not be maintained, and a myriad of bills would not be paid including the TV bill, the water bill, and the electric bill for the common areas. In quick order the community would collapse into an uninhabitable collection of buildings.
That said, by 2008 trouble was already brewing with our income threatened by homeowners not paying their assessments. Turns out that many of the same people who were not paying their mortgages didn't want to pay us either.
At first we thought we would be OK, that the banks would foreclose and we would get our money. But as time dragged on it became apparent that the banks were in no hurry to foreclose and by 2009 over 10% of the units were more than 30 days late and in most cases had stopped paying with no intention of paying.
No longer satisfied to let the banks get our money for us, we set out to get it ourselves by implementing a no-exceptions policy of sending a Demand Letter to homeowners when they were more than 30 days late and then proceeding to lien the property and foreclose as fast as we could.
As for the financial impact of the delinquencies, the money we received by leasing units we foreclosed on more than offset all of the money lost from people not paying their assessments. Stated another way, the association is richer today than it would have been if the delinquencies had never happened at all. And our monthly assessments in 2015 are actually less than they were in 2007!
Credits - The cast responsible for bringing this story to a happy ending (for those that still live here) consists of the many homeowners that continue to pay their monthly assessments on time and our delinquency management team consisting of the Property Manager, the Office Manager, the Board of Directors, and our legal firm Brough, Chadrow & Levine. So kudos to the responsible homeowners and kudos to the team for a job well done!