Home Owner's Associations Look to Foreclosures to Collect Past Dues. What about Hide-A-Way Hills?

In a recent article from the National Association of Realtors, it was noted that Home Owner Associations are discovering they have a power they have ever rarely acted upon until now — the right to foreclose on residents who stop paying fees.


Some HOAs Foreclosing on Residents

Reading the article caused me to wonder how Hide-A-Way Hills was doing with Members owing the Club.   Currently, it appears Hide-A-Way Hills is in the minority when it comes to people owing them money since over 65% of HOA's are reporting more than a 5% delinquency rate.  On the down side,  HAH is still right around the 5% mark with over $117,000 owed to the club.

Because of the costs of foreclosures, HAH historically would wait for the bank to foreclose and "piggy-back" on the filing, but now, even our own Hide-A-Way Hills has looked at ways to address the past dues owned to the Membership.  

As a result, the HAH Board has appointed a Delinquency Panel who is reviewing collection procedures. The goal? To become more aggressive in the collection to produce a result that would reduce our outstanding accounts. The Club typically does not foreclose, but it is being considered along with other measures.   Your thoughts?

**NOTE: The article referenced HOA's "issuing a special assessment".  All money issues  in Hide-A-Way Hills MUST BE VOTED AND APPROVED BY A 2/3 MEMBERSHIP VOTE.