If a HOA sends you to collections, and then puts a lien on your property. Can they still take you to small claims to sue you for the money?
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If a HOA sends you to collections, and then puts a lien on your property. Can they still take you to small claims to sue you for the money?
Quote:
Originally Posted by selefspragg
Unless your agreement states otherwise they would have to get a Judgment in order to file the lien and they cannot get a Judgment for the same thing twice -
What do you mean they sent you "to collections?"
What I mean by sent to collections, is that they have contracted another company to collect the debt.Quote:
Originally Posted by selefspragg
Quote:
Originally Posted by selefspragg
Then there's no Judgment and, yes, they can take you to Small Claims Court to get a Judgment and file the lien.
Some HOA's can do both. They can file a lien without having a judgment and then go to small claims to collect. It depends on whether the By-laws give them those rights.
Quote:
Originally Posted by LisaB4657
Judy raising her hand - again.
I don't understand this. I'm not questioning that you're right in any fashion but I don't understand.
They would file a lien on the property (which I understand the HOA might be able to do under the By-Laws) and then also go to Small Claims Court?
Wait - that's what you just said and I now I've said it and I'm still confused.
Am I confusing liens and Judgments? I don't understand the purpose of doing both (I guess).
The lien is to make sure that the homeowner can't sell or refinance without the HOA getting paid. Every set of association by-laws I ever wrote gave the association the right to record a lien as soon as the homeowner defaulted.
The option of going to small claims court is always available to anyone who is owed money. The right to place a lien on the property doesn't limit the association's right to collect what they're owed. They just can't collect more than once. So if the association files a lien and then sues, once the amount gets paid the association has to record a satisfaction of lien and issue a satisfaction of judgment.
If the association files a lien and sues and obtains a judgment, the judgment would show up on a judgment search and the lien would show up on a lien search but they would not be considered separate liens.
Basically the difference between the two is that the filing of the lien by itself doesn't give the association the right to collect immediately. It just insures that the property won't be sold or refinanced without the amount being paid. The filing of a lawsuit and obtaining a judgment gives the association the right to collect immediately after a judgment is issued (such as by attachment or garnishment). If an HOA is low on working capital, and if the homeowner owes a lot, then they might consider filing suit.
Of course it will! Asking questions gets you a higher grade!Quote:
JudyKayTee agrees: Thanks - now I understand. I trust this lack of understanding will not affect my final grade - ?
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