Kenthill Townhomes usually averages two or three units a year who default on their homeowners dues. We are not talking about being a little late. We are talking about people who simply do not pay. We are talking about thousands of dollars. The only way to make these people go is to threaten them with a sheriff’s sale (the steps are: letter, then letter with a fine ($10), then a lien (cost to us about $250), then foreclosure (cost to us about $1500, then a receivership (cost to us about $1500), then a sheriff sale (cost to us about $1500), which is the last resort. They usually sell first. As our property manager said recently, “They do not pay their dues because the money is just not there. It simply is not there.”
Right now, we only get $2000.00 when this happens. [At the moment, as I have posted, 2005/2006 is no exception – we have three units in this condition]. When we approve our new, revised Declarations we will get six months back payments. Six times $266.00 (supposing average dues at 266.00) equals $1596.00. $1596.00 times three [3 units a year who default] equals $4788.00. Even with it being less than 3 units a year in default, we can easily say that the updating of our documents will be paid off in a relatively short amount of time.
Moreover, we will be in what is known as a ”Super-Priority” position. The Attorney wrote: “If the lender pays the six months dues priority the Association may still be entitled to additional priority when/if the lender eventually foreclosed. If the lender didn't respond to the lawsuit paperwork the Association would be entitled to default the lender and the Association's lien would then be in first position."
