Common collection issues, legal aspects and various remedies available for collecting unpaid assessments.
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Collection Issues For Condominium And Homeowners¡¯ Associations
1. Collection Issues for Condominium and Homeowners¡¯ Associations: Legal tips, concepts and current trends in assessment collection and foreclosure Prepared and Presented by: ? Mark E. Lines, Esq. Shaw & Lines, LLC
2. Seminar Overview Assessments: The Lifeblood of the Community Association Collecting Assessments: Rights, Remedies, and Procedures Controlling or applicable laws: Uniform Act, state laws and federal laws (and any conflicts) Pursuing Owners Personally Deciding when to pursue a money judgment vs. foreclosure Money judgment litigation: step-by-step Lien Foreclosure Lien priority, the statutory lien and contractual liens Judicial foreclosure litigation: step-by-step Redemption Rights Federal Fair Debt Collection Practice (FDCPA) Bankruptcy Recent Economic and Housing Market Trends
3. Assessments: The Lifeblood of the Community The ubiquity of community associations Deed restrictions creating contracts Expenses, budgeting and choosing legal remedies to collect assessments
4. Collecting Assessments: Legal Rights, Remedies, Procedure and Limitations Sources of Law for Assessment Collection Uniform Common Interest Ownership Act (UCIOA) Federal laws (applications and conflicts) CC&R¡¯s and governing documents The Personal Obligation of Owners Election of remedies issues? The pros and cons of pursuing the owner personally with a money judgment action
5. Collecting Assessments: Legal Rights, Remedies, and Procedure (continued) Money Judgment Litigation: Step-by-Step The demand Summons and Complaint The Answer Default Judgment Attorney¡¯s Fees and Costs Post-judgment Collections Money judgments as investments (?)
6. Collecting Assessments: Legal Rights, Remedies, and Procedure (continued) Lien Foreclosure The ¡°automatic¡± statutory lien The contractual lien per the CC&R¡¯s Judicial foreclosure v. power of sale Lien priority Statutory priority Equitable priority (¡°Equitable Subordination¡±) The Notice of Lis Pendens
7. Collecting Assessments: Legal Rights, Remedies, and Procedure (continued) Judicial Foreclosure: Step-by-Step Title review and initial demand The foreclosure Complaint The Answer Default (or Disclaimers of Interest) Final Judgment The foreclosure sale (public auction) Deed upon foreclosure
8. Collecting Assessments: Legal Rights, Remedies, and Procedure (continued) Debtor/owner¡¯s rights of reinstatement, satisfaction and redemption Before the foreclosure sale After the foreclosure sale
9. Collecting Assessments: Legal Rights, Remedies, and Procedure (continued) Fair Debt Collection Practices Act (FDCPA) Definitions Limitations and applications Liability for violations
10. Collecting Assessments: Legal Rights, Remedies, and Procedure (continued) Bankruptcy Chapter 7 ¨C Liquidation Chapter 13 ¨C Reorganization Pre-petition vs. post-petition assessments Effect of discharge on post-petition assessments Most recent change in federal bankruptcy code Conditions for post-petition personal liability not affected by discharge of debt The ¡°Unavoidable¡± statutory lien
11. Recent Economic Trends Affecting Assessment Collection and Lien Rights Escalating foreclosure rates Effect of mortgage foreclosure on lien rights and limits on collection options ¡° Excess proceeds¡± from foreclosure sales Lien foreclosure a viable option for non-paying banks Making good business decisions and the ¡°Business Judgment Rule¡±