| Many Arizona homeowner associations are faced | | | | strong leadership. If you do not have a written |
| with a very serious situation. Many homeowners are | | | | collection policy in place, you need one. This policy |
| not paying their monthly assessments. In January | | | | should not allow homeowners to be delinquent |
| 2009, the situation is not improving. Many of the | | | | beyond the equivalent of two, at the most three |
| persons not paying their HOA assessments are the | | | | assessments, before referring accounts to a good |
| same homeowners no longer paying their mortgage | | | | collection attorney. |
| payments. | | | | Unfortunately, some associations can’t afford an |
| Unfortunately, associations that are experiencing the | | | | attorney because the legal fees will quickly exceed |
| worst pains are those that experienced heightened | | | | the original debt. We have been fortunate to |
| sales activity during the heyday of easy mortgages. | | | | secure the services of an attorney who performs |
| One association we are familiar with is the victim of | | | | collection work and collects legal fees from the |
| bad timing. The developers completed construction | | | | homeowner. This approach should preclude any |
| just as the mortgage qualification process was the | | | | reluctance on the part of the association’s board |
| most lax. Seventy-five percent of the homes sold | | | | to proceed while the debt is still manageable. If you |
| in this community were sold to investors. | | | | are not aware of an attorney who offers a |
| This is a dire situation, not a typical one. | | | | contingent fee arrangement for collections, make |
| Nevertheless, many middle class communities are | | | | some phone calls. Remember, everyone, including |
| facing serious delinquency issues, in any event. | | | | attorneys, is more likely today to reconsider an old |
| What to do? This is the time when associations | | | | business model. |
| need to look to their management company for | | | | |