SOP – Community Care

406: Collections

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  • General Information
  • Collection process timeline
  • How to stop the collection process
  • Collection process for Special Assessments

GENERAL INFORMATION

When assessments are unpaid, the collection process proceeds according to the association’s Collection Policy. The Collections Representative in the Accounting Department has access to the Collection Policy and can answer questions that cannot be handled by Community Care.

Typically there are three basic steps in the collection process:

  1. Pre-lien
  2. Lien
  3. Legal/Collections Attorney

COLLECTION PROCESS TIMELINE

The following is the typical timeline followed for an association with a 15 day grace period (unless the Collection Policy states otherwise):

  • Pre-lien charge may be applied on the 46th day if payment is not received for associations with a 15-day grace period.
  • For example, if not payment is received from July 1st through August 15th, a pre-lien charge may be assessed on the 16th of August since 45 calendar days have elapsed without payment.
    • Regular and certified letters are sent to the homeowner’s property address and billing address giving the Notice of an Intent to Lien.
    • A pre-lien fee is charged.
    • The vesting fee is charged. This covers the cost to check the title and make sure nothing has changed.
    • Nothing has legally been reported against the property yet.
    • The homeowner has 30 days from the day the pre-lien was mailed to pay the balance in full. Partial payments do not forfeit the lien schedule. Some associations will reject partial payments.
    • Late charges are assessed each month that the dues are late, even after the pre-lien has been assessed.
  • Lien may be applied on the 76th day if payment is not received (30 calendar days after pre-lien).
    • A lien fee is charged
    • Regular and certified letters are sent to the homeowner’s property address and billing address
    • A lien is recorded on the property – only after the board signs the Resolution to Lien.
    • Late charges are assessed each month that the dues are late, even after the lien has been assessed.
    • The homeowner has 30 days from the day the lien was applied to pay the balance in full. Partial payments do not forfeit the lien schedule. Some associations will reject partial payments.
  • Legal/Collection Attorney. If payment is full is not received by the 106th day (30 calendar days after Lien) the account may be turned over to the collections attorney.
    • Action can still accept payments if an account is with the Attorney’s office. We can never turn away a payment (legally). HOWEVER, Once an account has gone to the attorney they must contact the attorney’s office regarding any questions on their account. We are NOT to discuss the account, give the balance owed on the account, or provide them with any information other than the contact information for the attorney.
      • Note: Under certain circumstances the Collections Representative in our office may need to assist them. For example, if they state that they are having difficulty reaching the collection attorney, the call can be transferred to the Collections Representative in our Accounting Department who can assist them in getting in contact with the attorney’s office.
      • Also, occasionally an account may be marked “Legal,” but the “Comments” on the account will contain the code, “TA,” (Transitioning Account – En route to Attorney). This means that file has not been sent to the attorney yet and the caller may be warm transferred to the appropriate Collections Rep. here at Action.

The typical collection process for an Association with a 30 day grace period is the same as stated above except that the timeline is slightly different. The account may Pre-lien at 60 days past due, Lien at 90 days past due, and go to the Collections Attorney at 120 days past due (unless the Collection Policy states otherwise).

HOW TO STOP THE COLLECTION PROCESS:

  • Pay the amount owned in full. Once a pre-lien/lien has been assessed, payments in FULL MUST BE MADE in order to stop the collections process. Partial payments may be rejected (The Collection Policy for some associations will not allow partial payments). After the payment has been made, the homeowner may still submit a written request to ask for fees to be waived or reduced. They must send it to communitycare@actionlife.com so the Community Manager can present to the Board for their consideration at their next meeting.
  • Homeowners who wish to request a payment plan or ask for fees to be waived may do so.
    • Before the account is turned over to the Collection Attorney, they must submit the request in writing to communitycare@actionlife.com so the CM can present to the Board for their consideration at their next meeting. The owner should email the request to communitycare@actionlife.com and carbon copy the appropriate Collections Agent. The Collections Agent will flag the account so that the collection process will be temporarily suspended pending the board’s decision. The owner will be notified of the board’s decision in writing.
    • After the account has been turned over to the Collection Attorney, they must submit their request through the attorney.

COLLECTION PROCESS FOR SPECIAL ASSESSMENTS:

  • Special assessments follow the association’s Collection Policy (same grace period as regular assessments as stated in the association’s Collection Policy).
  • If payment is not received, late charges will be charged, and it will go into the collection process (as stated above) if non-payment continues.