HOA vs. Bank

I was wondering from another thread which scenario would make more sense:

1.) Can't afford mortgage and HOA payments so stop making HOA payments.
2.) Can't afford mortgage and HOA payments so stop making mortgage payments.

In the first scenario the amounts should be lower, but the HOA can (in some cases) accelerate the dues and place a lein on the house. In the second scenario the bank can foreclose, but they don't seem to be rushing to do that lately.

Any thoughts?

I read a few stories about folks continuing to pay HOA even when they stopped paying the mortgage--apparently to keep in the good graces of the neighbors while they were plotting their escape and waiting for the bank to make its move. As I recall, one case was a guy who crunched the numbers and said that he just didn't want to sink anymore money into his quickly depreciating house but enjoyed using the pool and golf course.

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From the subdivisions that I am involved in people are not paying either. They have a lien placed on their home/lot/condo and are pi$$ing off their fellow homeowners as well. Then, the other homeowners have to pay the price of trying to make up the budget from the lack of payments.


I sure would love to see some of those people at the homeowners meetings in October, but I doubt that I will.

Some people in Watercolor who are not paying their HOA dues have got burnt since Watercolor now keeps a list of such violators and checks ID's when trying to enter the beach club. Supposedly it has helped increase collections. I find it interesting that some people aren't paying either bills and continue to rent their house. Their guests show up and are denied access to the beach club. How embarrassing is that?

Any ideas on percentage not paying? I would think experiences like that might wreak havoc with bookings next season.

From the subdivisions that I am involved in people are not paying either. They have a lien placed on their home/lot/condo and are pi$$ing off their fellow homeowners as well. Then, the other homeowners have to pay the price of trying to make up the budget from the lack of payments.


I sure would love to see some of those people at the homeowners meetings in October, but I doubt that I will.

When HOA's place a lien and then pursue foreclosure I understand that they need to payoff the mortgage(s) that have priority in order to be successful in their action.

Doesn't this help the party not paying the dues and devistate the HOA members?

Some people in Watercolor who are not paying their HOA dues have got burnt since Watercolor now keeps a list of such violators and checks ID's when trying to enter the beach club. Supposedly it has helped increase collections. I find it interesting that some people aren't paying either bills and continue to rent their house. Their guests show up and are denied access to the beach club. How embarrassing is that?

... Geez--doesn't that suck out loud!

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Is there a community around here where the HOA isn't having trouble collecting dues? Seems like almost every one has people defaulting on a rather large scale.

Some people in Watercolor who are not paying their HOA dues have got burnt since Watercolor now keeps a list of such violators and checks ID's when trying to enter the beach club. Supposedly it has helped increase collections. I find it interesting that some people aren't paying either bills and continue to rent their house. Their guests show up and are denied access to the beach club. How embarrassing is that?

Any ideas on percentage not paying? I would think experiences like that might wreak havoc with bookings next season.

So, my question is will the rental agenices catch wind of this non payment of dues and tell these owners that they can no longer service them? I am glad to hear WC is trying to do the right thing. That is really bad PR for the owners and I can see any renter being po'ed and rightly so!!!!

When HOA's place a lien and then pursue foreclosure I understand that they need to payoff the mortgage(s) that have priority in order to be successful in their action.

Doesn't this help the party not paying the dues and devistate the HOA members?

My brain is not working correctly, (pre-hurricane prep ) I am sorry but I don't know what you are trying to say.

So, my question is will the rental agenices catch wind of this non payment of dues and tell these owners that they can no longer service them? I am glad to hear WC is trying to do the right thing. That is really bad PR for the owners and I can see any renter being po'ed and rightly so!!!!

I hope to present to the HOA boards that I am a member of to figure out a way to stop the owners access to the ammenities that they are not paying for. I am not sure how it can be done but I am going to try..

I hope to present to the HOA boards that I am a member of to figure out a way to stop the owners access to the ammenities that they are not paying for. I am not sure how it can be done but I am going to try..

Good luck. Another new problem! :roll:

I hope to present to the HOA boards that I am a member of to figure out a way to stop the owners access to the ammenities that they are not paying for. I am not sure how it can be done but I am going to try..

Install big billboards at the entrance of the subdivision, clubhouse and swimming pool and threaten to post the names of the pikers in 6" block letters.


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Install big billboards at the entrance of the subdivision, clubhouse and swimming pool and threaten to post the names of the pikers in 6" block letters.


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I don't think the Scenic 30-A committee would approve of the billboards. Good lord, the big blue signs caused enough controversy.

HOwever we did, after asking legal cousel, learn that we could post a list of all homeowners and their standings regarding payments of the HOA dues. So, on our registered only website all homeowners are/will be listed and beside their name there should be how much they owe or that they are past due. THe peeps that have paid on time are/will be posted as being current. I have been late before and, to me, it is embarresing.

Will boldly come forward and cast the judgement for us?

My brain is not working correctly, (pre-hurricane prep ) I am sorry but I don't know what you are trying to say.

I really think that when an HOA files a lien for non-payment of HOA dues or assessments, that in order to collect they need to foreclose on their lien. What does that mean in English; The HOA pays off all liens that are in front of their lien like the mortgage, property taxes etc. then they own the property and can sell it. If they get more for it than they paid for it they are ahead. If they get less for it than they paid for it they have lost money.

I have been bringing it up, because Watercolor HOA has been filing Lis Pendens against certain properties on a case by case basis as a business decision, and I just don't know if it helps or devastates the HOA budget.

I've seen foreclosures lately where the property is worth $400,000 or more less than it would cost to recover in foreclosure. That would devastate an HOA budget.

I've been an HOA President which is usually a thankless job, but someone has to do it. For us, we used the public notification option within the bounds of what is legal. It's always a very hard P.R. decision. Many times you have neighbors who have legitimate hardship, and it may not be right in God's eyes to hold the person to public ridicule. Then which of us gets to choose who is exempt from the system? Will you use the scarlett letter against your neighbor with a sick family member?

I really think that when an HOA files a lien for non-payment of HOA dues or assessments, that in order to collect they need to foreclose on their lien. What does that mean in English; The HOA pays off all liens that are in front of their lien like the mortgage, property taxes etc. then they own the property and can sell it. If they get more for it than they paid for it they are ahead. If they get less for it than they paid for it they have lost money.

I have been bringing it up, because Watercolor HOA has been filing Lis Pendens against certain properties on a case by case basis as a business decision, and I just don't know if it helps or devastates the HOA budget.

I've seen foreclosures lately where the property is worth $400,000 or more less than it would cost to recover in foreclosure. That would devastate an HOA budget.

I've been an HOA President which is usually a thankless job, but someone has to do it. For us, we used the public notification option within the bounds of what is legal. It's always a very hard P.R. decision. Many times you have neighbors who have legitimate hardship, and it may not be right in God's eyes to hold the person to public ridicule. Then which of us gets to choose who is exempt from the system? Will you use the scarlett letter against your neighbor with a sick family member?

OK, now I understand. Most of the properties that I am involved with due to being on the thankless job of a BOD :angry:, the banks have first shot. Soooooooooo, we are hoping that if the bank takes ownership then they will be the ones paying off the dues. I think though that the state of Florida just passed a law and on houses you can only go back a year with unpaid dues. Can anyone confirm?

Yes, PR decisions are made anytime things like this evolves and to be quite frank, it sucks. Some people are just in a bind and can not do it. I even know of a person that quit serving on a BOD b/c he was unable to make any further payments and did not want to put himself or the board in an awkward position.
Sick family members? I would think that would be a case by case basis but I have not heard of any that I am involved in and if so I would, sad to say, want to see proof. People can create some stories to get themselves out of a jam and sometimes it does involve family members.

OK, now I understand. Most of the properties that I am involved with due to being on the thankless job of a BOD :angry:, the banks have first shot. Soooooooooo, we are hoping that if the bank takes ownership then they will be the ones paying off the dues. I think though that the state of Florida just passed a law and on houses you can only go back a year with unpaid dues. Can anyone confirm?

Yes, PR decisions are made anytime things like this evolves and to be quite frank, it sucks. Some people are just in a bind and can not do it. I even know of a person that quit serving on a BOD b/c he was unable to make any further payments and did not want to put himself or the board in an awkward position.
Sick family members? I would think that would be a case by case basis but I have not heard of any that I am involved in and if so I would, sad to say, want to see proof. People can create some stories to get themselves out of a jam and sometimes it does involve family members.

Slowly but surely we all stop giving our neighbors the benefit of the doubt when they look us in the eyes and tell us something. There's a big American lesson in that somewhere.
I'm with you, you can be sure that BOD members are either on the Board for business advantage which many times comes at the expense of the homeowners or are performing a truly selfless act. Sometimes it's easy to see the difference. Peace.

Is there a community around here where the HOA isn't having trouble collecting dues? Seems like almost every one has people defaulting on a rather large scale.

I believe it is mostly the newer developments and that the older ones are in pretty good shape. Of course most of them prescribe to the "not my problem now" approach when it comes to reserve funds. Reserve funds are a big thing to look at when purchasing, unless you like large unplanned assessments.

So, my question is will the rental agenices catch wind of this non payment of dues and tell these owners that they can no longer service them? I am glad to hear WC is trying to do the right thing. That is really bad PR for the owners and I can see any renter being po'ed and rightly so!!!!

I think that the WC HOA can take past due assessments directly from rental proceeds. If it's being rented by another company though they are out of the loop.

I hope to present to the HOA boards that I am a member of to figure out a way to stop the owners access to the ammenities that they are not paying for. I am not sure how it can be done but I am going to try..

Yep, place a lein on the house, seize the house, and auction the house. The owner is no longer in possession and therefore no longer a HOA member. Unfortunately this is the only legal way to restrict access to amenities. Otherwise the owner (no matter the dead beat) can sue the HOA for restricting their use.

OK, now I understand. Most of the properties that I am involved with due to being on the thankless job of a BOD :angry:, the banks have first shot. Soooooooooo, we are hoping that if the bank takes ownership then they will be the ones paying off the dues. I think though that the state of Florida just passed a law and on houses you can only go back a year with unpaid dues. Can anyone confirm?

Yes, PR decisions are made anytime things like this evolves and to be quite frank, it sucks. Some people are just in a bind and can not do it. I even know of a person that quit serving on a BOD b/c he was unable to make any further payments and did not want to put himself or the board in an awkward position.
Sick family members? I would think that would be a case by case basis but I have not heard of any that I am involved in and if so I would, sad to say, want to see proof. People can create some stories to get themselves out of a jam and sometimes it does involve family members.

Correct, with HOA the dues can only go back one year and ever financial year everyone starts off at zero. However you can still attempt to collect the previous years. It just can't be used in the process of obtaining a lein. You might want to see if your HOA docs support acceleration. This is used when someone goes past due in the first quarter/month/whatever you can basically then tell them that all amounts are due immediately.

Thank you for the clarification swgb. I am looking at this again and see that WC can recoup HOA dues from non-paying properties through rental monies. That makes sense. What does WC do as far as amenitites for these properties?...I would think the renters would get them if the dues were paid by this manner. I hope a big assessment doesn't come up anytime soon. :shock:

Thank you for the clarification swgb. I am looking at this again and see that WC can recoup HOA dues from non-paying properties through rental monies. That makes sense. What does WC do as far as amenitites for these properties?...I would think the renters would get them if the dues were paid by this manner. I hope a big assessment doesn't come up anytime soon. :shock:

They should be able to, the rental company I used to work at had an agreement with HOA/COA that any rental monies collected (after management fees) would go to anything past due for HOA/COA's managed by our company. In all honesty I think the majority of people not paying are not using Noble House, or they are so far in arrears (sp?) that they can't catch up with the occassional rental.

Barring any hurricanes you guys should be okay for assessments, I can't think of anything that would be affecting you in the near future.

for my friend SWGB...

They should be able to, the rental company I used to work at had an agreement with HOA/COA that any rental monies collected (after management fees) would go to anything past due for HOA/COA's managed by our company. In all honesty I think the majority of people not paying are not using Noble House, or they are so far in arrears (sp?) that they can't catch up with the occassional rental.

Barring any hurricanes you guys should be okay for assessments, I can't think of anything that would be affecting you in the near future.

I think that very, very many mortgages that are recorded for second homes in this area contain something along the form of a UCC that is an assignment of rents and takes priority over any rights to rental income that an HOA might design into their control after the fact. Have you seen one of these assignment of rents that are recorded by local mortgage companies?

I think that very, very many mortgages that are recorded for second homes in this area contain something along the form of a UCC that is an assignment of rents and takes priority over any rights to rental income that an HOA might design into their control after the fact. Have you seen one of these assignment of rents that are recorded by local mortgage companies?

I honestly can't speak to that, and I'm not a lawyer, but in most cases that I ever dealt with the owner was current on the mortgage and was letting the dues go past due for whatever reason. Rarely was a mortgage an issue in one of those cases. HOA/COA management contracts can be in place for as little as one year, but can and do last longer. I would assume that the contract in force first would prevail in court. Keep in mind to that a rental company that is also acting as the management company has it in their best interest to pay the condo dues as they are more likely to get paid by said HOA/COA. In fact if managing one of those arrangements I would operate it in that manner as I believe most banks right now are a little too swamped to verify if a unit is on a rental program or if a unit's management fees are being paid.