Since assessments are fees for maintenance and use of utilities and not consumer debt, many association board members wonder if their communities are subject to the Fair Debt Collection Practices Act (FDCPA). Some may be surprised to learn most state and federal courts consider assessment to be “debts” according to this definition:
DO’S AND DON’TS: HOW TO STAY OFF THE EVENING NEWS
A quick internet search quickly reveals that foreclosures pursued against homeowners living in planned communities have received significant negative press. Stores of abuse by dictatorial boards of directors against honest, hardworking property owners...
Why does it take so long for a lender to foreclose?
Sometimes the answer to that question depends on where you live. In very large states like California, Florida, New York and Texas, the sheer volume of foreclosures will have a delaying impact on lender foreclosures.
A homeowner association’s ability to foreclose on a property for failing to pay assessments is a potent tool in collections.