What Happens to Delinquent Accounts?

Last Updated on Saturday, 27 March 2010 22:49 Written by Board Member Saturday, 20 March 2010 00:00

It takes just a short time for legal fees, late charges and interest to add up if you fail to pay your HOA dues on time. The following is the collection policy for our Association:

Monthly assessments are due the 1st of the month and are late after the 20th, at which time they are subject to a $10 late charge. There also is a 1% interest charge on the balance due. Should an account become delinquent, the Association will file at lien on your home.

Once your account is three months delinquent, it is turned over to the Association’s attorney for a series of collection efforts; beginning with a Demand for Payment Letter, then moving through the process of personally suing the unit owner and in some cases foreclosing on the unit.

When a payment is received from a homeowner on a delinquent account, the payment is applied in the following order:

1. Any legal fees
2. Maintenance charges (homeowner repairs, etc..)
3. Late charges applied
4. Special assessment (if any)
5. Monthly maintenance assessment

Following up on delinquent accounts is not a discussion topic the Board likes to pursue. However, it is necessary to ensure that everyone is on top of their dues. Read more about the collection of unpaid assessments policy and the CRS38.33.3-123 document.

In accordance with 38.33.3-123, if a Unit Owner fails to timely pay assessments or any money or sums due to the Minotaur Village Homeowners Association, the Association may require reimbursement for collection costs and reasonable attorney fees and costs incurred as a result of such failure, without the necessity of commencing a legal proceeding.