Assessment collection services for condominium and homeowner associations with delinquent homeowners
CHDB Law provides a wide range of HOA-related legal services representing condominium and homeowner associations in every part of their business practice—including enforcement, litigation, and insurance defense. But our Assessment Recovery practice has a very narrow focus—we only collect unpaid assessments from delinquent homeowners, and we only work for homeowner associations.
Key areas of focus
CHDB Law have been delivering successful outcomes to HOA clients for over 30 years. We work several thousand collections cases on a daily basis and have recovered over $100M for our clients. We offer free, online, real-time status reports that are accessible 24/7 so that you can check the progress of your case anytime, anywhere.
Our attorneys handle a wide range of matters:
- Collecting small claims judgments
- Preparing demand letters
- Preparing lien notices
- Obtaining money judgments
- Preparing bank garnishments
- Preparing wage garnishments
- Initiating lien foreclosures
Meet our Assessment Recovery practice group attorneys.
Flexible assessment collections and recovery plan options for HOA and COA clients
Leveraging years of unpaid association dues collections experience, our firm offers several effective solutions for recovering delinquent assessments for condominium and homeowner associations. Nearly 33% of all cases are resolved without a lawsuit through payment in full or the owner making payment arrangements.
We offer three approach and payment options for you to choose from: Homeowner Pays, Pay-As-You-Go, or Hold the Fees Foreclosure.
Homeowner Pays Plan: Save up-front costs for personal money judgments
If your association aims to collect a homeowner debt without any up-front cost, this option may be the right fit for you. CHDB takes on the risk and expense of pursuing the delinquent homeowner account. The Homeowner Pays approach is right for personal money judgment (Justice Court) lawsuits accounts not previously referred to another attorney or collection provider.
The Homeowner Pays approach is right for:
Personal money judgment (Justice Court) lawsuits accounts not previously referred to another attorney or collection provider.
How fees and costs are handled:
- CHDB advances all fees and costs.
- Owner payments are allocated to costs first, then split on a 50/50 basis until the fees advanced by the Firm have been reimbursed.
- In the event an owner files for bankruptcy or contests the lawsuit, expenses shift to a Pay-As-You-Go basis.
Things to consider:
- CHDB has the authority to waive soft costs, such as late fees, fines, and interest charges.
- CHDB can authorize payment agreements.
Pay-As-You-Go: Our fee-for-service collections option
This is our most simple and straightforward way to structure fees when an association seeks collection action on a homeowner debt. And it works for any account.
Pay-As-You-Go is right for:
- All personal money judgment (Justice Court) lawsuits.
- Foreclosure.
How fees and costs are handled:
- The association incurs and pays fees and costs on a Pay-As-You-Go basis.
- Flat fees typically apply to Justice Court lawsuit services.
- Foreclosure services are offered on an hourly basis.
Things to consider:
- Any account is eligible.
- The association retains authority over all decisions and all aspects, including waiver and payment agreements.
Hold the Fees Foreclosure: Our hybrid approach
If your association wants to collect unpaid homeowner assessments while preserving cash flow, our hybrid approach to unpaid homeowner assessment collections is worth considering.
Hold the Fees Foreclosure is right for:
- Foreclosure
How fees and costs are handled:
- CHDB advances attorneys’ fees.
- The association pays the costs (these are charges paid by the Firm to third parties – for example court filing and process server fees).
- Owner payments are split on a 50/50 basis until the fees advanced by the Firm have been reimbursed.
- Unless an exception applies, fees that haven’t been reimbursed are not due until after the Sheriff’s Sale.
- Typical exceptions include Trustee’s Sale, tax lien foreclosure, if an owner files for bankruptcy, or the owner contests the lawsuit.
Things to consider:
- The account must meet the statutory foreclosure threshold (the owner must owe a minimum of $1,200 in pure assessments or have failed to make a payment towards assessments in a year).
- Hold the Fees Foreclosure can be used on its own or can follow a personal money judgment obtained through one of our other Assessment Recovery options.
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Resources
Leadership
Assessment Recovery Practice Group
CHDB’s Community Association and Condominium Assessment Recovery team’s extensive depth of bench and experience helps community associations successfully gain payment from members who owe them money. Our assessment recovery attorneys, paralegals, and staff are responsive and work each file in the most effective way possible to deliver the best results to our clients day in and day out.
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Typical timeline for assessment recovery
Arizona Justice Court Collections
Initial Action
- Demand Letter and Payment Agreement
- 45 days
For a flat fee, the debtor receives a demand letter on CHDB letterhead. We take phone calls from debtors. Nearly 33% of all cases are resolved without a lawsuit through payment in full or the owner making payment arrangements.
We accept credit card payments over the phone and on our website. Monthly status reports are available online 24/7 and are provided at no additional charge.
Follow Up
- Justice Court Lawsuit to Judgment
- Up to 4 months
Your CHDB legal team may or may not recommend a lawsuit depending on the viability of collecting from the debtor. Before filing a lawsuit:
- CHDB obtains an official deed from a title company
- We check for a Trustee’s Sale notice, review the owner’s location and ownership status, and check for an Arizona bankruptcy filing
- Screen for active military duty status
- Review the amount owed
The assessment recovery case may proceed to judgment, typically by default, or it may be resolved without judgment. We monitor the property for changes in ownership or new lender foreclosure activity at no additional cost.
If Necessary
- Post-Judgment and Garnishment
- Up to 4 months
We utilize experienced investigators and professional resources to locate owner employment and bank asset information making wage garnishment an option.
If assessment collection appears unlikely, judgments are recorded and judgment liens are attached to an owner’s real property (including non-association property). This often results in a successful recovery when the owner buys, sells, or refinances real property.
Debtors and owners can make payments through our website.
The firm’s attorneys have provided assessment collection services for the following clients:
- Planned Communities
- Homeowners Associations
- Townhouses
- Condominiums
- Co-Operatives
Venues
Our assessment recovery attorneys practice in the following venues:
Arizona
- All Arizona State Courts
- Supreme Court, Arizona
Utah
- All Utah State Courts
Federal
- Federal Court in Arizona
- Federal Court in Texas
- 9th Circuit Court of Appeals
Related practice areas
Education
Seminars
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HOA Collections
This seminar will examine recent changes in legislation, the real estate market, the local economy, and the courts. Should associations make adjustments? What does the future hold? What’s working and what isn’t? Discover how new laws and trends are impacting your community’s bottom line.
Schedule an appointment
Our dedicated team of experienced assessment collections attorneys and paralegals available to guide you through every step of the debt recovery process. Call our toll-free number (800) 743-9324 to get started or contact us below to discuss the best option for you.