Dealing with Delinquent Owners Denying Access to Common Areas

 By and large, a board and management company can expect payment from residents  for monthly fees to be received on time and in full. These all-important funds  keep day-to-day operations moving forward without delay. There are situations,  however, that arise which can offset the balance sheet. Circumstances run the  gamut but in the end, monies that can’t be collected end up costing a whole lot more than the losses they represent.  

 “Most owners stop paying their assessments because the value of their home is  less than what they paid or owe on the mortgage,” says Adam P. Freedman, principal at JKM Services, a consulting firm that  specializes in real estate management and receivership services.  

 While in some cases failure to pay might be linked to logical reasons such as a  person lost their job or became ill, often times a reason is not provided. “People have a tendency to slide off the landscape,” says Steven J. Weil, PhD, EA, LCAM and president of Royale Management Services  in Fort Lauderdale. “They don’t call up and say I’m not going to pay, they just stop paying.”  

 At the beginning of the year, Florida’s unemployment rate hovered around 10 percent. With more people remaining out of  work or losing their jobs, the ability to make monthly payments above and  beyond the necessities becomes a significant problem for many. “In some cases, people will wait until they are foreclosed upon and then move  elsewhere and perhaps rent, but they don’t tell you that is what they are doing (obviously),” says Jay Steven Levine, attorney and founder of JSL Law Group.  

 There are certain circumstances when a resident will withhold payment due to  unresolved issues or feelings of entitlement. “If a property is under water and there is no equity, investors will use that as  an excuse not to make payments,” says Levine. “Once in awhile there is dissatisfaction with maintenance or amenities and people  think they do not have to pay but that is not a legal defense.”  


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  • Winston1510 on Wednesday, October 9, 2013 9:38 AM
    When delinquent owner removes most of personal propert and comes back next day for rest can he not be permitted on to property . He is leaving prop in good cond &leanind 30. Thousand in fixtures plus built in tvs and drapes carpets
  • Can a association use a debt collected to collect fines or late assemente
  • You can attempt a short sale at any time. The preblom is that the short sale has to close within a period of time allowed by the bank. In other words, if it takes 6 months to get an offer with a 3.5% down payment and a 90 day escrow, good luck getting the bank to accept it. However, if, next week, someone wants to pay cash and close right away, you stand a pretty good chance of making it happen.References : Was this answer helpful?
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