Is HOA trying to foreclose or just collect? (real estate, foreclosures)

[v12condo]

I live in a condo building and I've become behind on my HOA assessments (they raised them by $100 in January so it has really stretched my budget). They liened the property in March, so I worked out a payment plan with the Board and was late on my last payment by 2 weeks. They sent me a letter this week that I had lost all my privileges (package acceptance, pool access, they even disconnected my Directv which I pay Directv directly for). I am very good at keeping in contact with them so I sent them a letter acknowledging that I was late and that I mailed all past due amounts plus June assessment so I am now current. Today, I look on the property management website at my statement to see that they have charged me $250 to retain an attorney plus $100 'Attorney prep package fee'. I also see that they changed my mailing address to an attorney's that deals with collecting assessments and foreclosures. Well, now I'm freaking out. Even though I have paid can they proceed with foreclosure? Or is this the first step the HOA is using to collect? Also, now that I am current and plan to stay that way, when do they decide to remove the lien?

Thanks

Jan

[BRinSM]

i would imagine that if you can come up with your back dues then they will drop the charges. it does nobody any good keep racking up fees that won't ever be collected anyways. maybe you should borrow some money from family or a friend to get yourself caught up. then, make sure this never happens again.

[v12condo]

I am current, all past due and current assessments were paid this week.

[GnosticCyn]

They can place a lien against the property, but only your mortgage can be foreclosed upon.

First I would talk to them and see if they just jumped the gun and will remove the charges. If not, then you should probably get your own attorney, one who specializes in real estate. Do you have a copy of your HOA contract and/or rules? Normally the proceedures are spelled out in the contract.

[CESpeed]

What they did was illegal (the DirectTV thing) and you have the right to sue them. But thank you for highlighting exactly why condos or any property with an HOA is a bad idea.

[v12condo]

I spoke to the property management company today and they said my account had been sent to the Attorney for collection (no foreclosure, phew). I'm waiting for the attorney to call me back, but I am going to pursue the fact that the HOA retained the law firm after I sent them a letter telling them I mailed a check for the past due amounts and that my current assessment would follow and that I'm not paying the attorney fees. I'm also going to tell them that I will pursue my own legal advise for the disconnecting of my Directv service. Thanks for your advice and wish me luck. HOA are a nightmare!

[JessicaK]

It should state in your bylaws when they can send you to collections, its either a time (that you have an outstanding balance) or an amount. Per the bylaws that you agreed to when you move in they automatically send you to collections. Correspondance is good, but the HOA lose money when people are past due. Habitual past due accounts raise maintenance fees, because the bills still have to get paid.
Were you assessed late fees, and did you pay those late fees?
Generally, the HOA won't consider you "paid up" until you pay the legal fees. The HOA is billed those by the lawyer just to write you a letter. They dont get that money, it goes right to the lawyer. You can certainly dispute them, but in the meantime, PAY THEM. If you don''t it'll show up as an outstanding balance all over again. If you dispute it, and they agree, it can be credited, but as long as you have an outstanding balance, you'll just seem like a deadbeat, esp if you have a pattern of lateness.
As for the direct tv thing, that sucks. But check your by-laws, if they put them in there, then they would be following standard operating procedure. Sure, you could try to fight it in court, but generally lawyer WRITE the bylaws, so I'd be really careful before investing any money hoping for a big pay out.

Good luck!