Day 1 Receipt of Request to Prepare Lien
Day 3 Lien Ready for Signatures
Day 1 Receipt of Signed & Notarized Lien
Day 3 Record Notice of Claim of Lien.
Day 6 Notification by HOA Collections within ten (10) days of recording sent by certified and first class mail.
Day 37 Thirty (30) day waiting period, as required by the FDCPA (counting of the 30 days begins the day after certified letters are deposited in the mail).
Day 40 Request authorization to proceed.
Day 1 Receipt of Signed & Notarized Notice of Default
Day 5 Record Notice of Default and Election to Sell.
Day 15 Notification by HOA Collections within ten (10) days of recording sent by certified and first class mail notifying owner when ninety (90) day redemption period will expire.
Day 75 Authorization for publication sent to Association (sent approximately 75 days from recording of Notice of Default).
Day 1 Upon receipt of written authorization and fees due, HOA Collections, will have publication dates scheduled, at which time the advertising will begin.
Day 3-24 Publishing ( 3weeks ) and Posting ( 20 days ).
Day 31 Trustee Sale held.
What Happens Now
The Homeowner could …
Arrange through our office to pay in full, all delinquent assessments, late charges, interest and fees, to resolve their delinquency and bring them back into good standing with the Association.
Contact our office to arrange a contracted payment plan (Good Faith Agreement) to bring their account current over the next several months.
File for Bankruptcy, at which time we will then file the “Proof of Claim” for the Association and monitor the case at no charge to the Association. Should the Homeowner fail to keep current on their post- petition payments during bankruptcy proceedings, our attorneys will file the appropriate motions with the court to insure payments.
Allow the First Mortgage to Foreclose, at which time we will demand from the lender the 9 month Superpriority Lien (NRS 116.3116) amounts on behalf of the Association, OR, make a claim against any excess funds.
The Bank’s Foreclosure sale occurs on September 21, 2011, and the bank gets it back or an Investor buys it just slightly over opening bid (amount owed to bank).
The Association can collect balances owed going back to March 1, 2011, and may have to write off the unpaid portion owed to bad debt.
If the property is sold for more than what is owed to the bank, the extra money is called “Excess Proceeds” and HOA Collections will make a demand against those monies for everything that is owed.
The Homeowner could choose to ignore all proceedings, and the Association’s foreclosure would proceed.
What It Costs
FIRST 30 DAYS
Average cost to Homeowner of Notice of Lien through Redemption: $306.00 plus postage
30 – 90 DAYS
Average cost to Homeowner of Notice of Default through Redemption: $701.00 plus postage
90 – 110 DAYS
Average cost to Homeowner of Notice of Sale through Redemption: $1126.00+ plus postage and publication costs
Average cost to Homeowner to Redeem on Day of Sale: $1288.00+ plus postage and publication costs
NOTE: Association advances fees to Trustee at time of publication so fees can be included in opening bid at sale. This allows the Association to effect a no cost recovery if foreclosure sale is warranted.
How Do I Get Started?
- Starting an account is a quick and easy process. First we need a signed Designated Agent Form.
- Next we need a copy of your Collection Policy and a W-9.
- Finally we will need a New Association Information Form completed. This form will have all the information we need to open an account and begin the collections process.
Once we have the required documents, all future accounts can be started by simply emailing or faxing account information to us.
Or just give us a call and we’ll walk you through everything over the phone.