Our local sewer board, which I believe is a 204 entity, is telling delinquent customers they will foreclose on their home if they don't pay their fees. This is after they have placed a lien and tried all other methods of collection. I just don't understand how that is possible when they don't have a loan or mortgage on that property. Also, they are applying late fees on late fees. Is that legal?

Its possible that the laws establishing the sewer board permit it to foreclose to recover what's owed. You would have to check the laws establishing the board.

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Originally Posted by patsretreat

Our local sewer board, which I believe is a 204 entity, is telling delinquent customers they will foreclose on their home if they don't pay their fees. This is after they have placed a lien and tried all other methods of collection. I just don't understand how that is possible when they don't have a loan or mortgage on that property. Also, they are applying late fees on late fees. Is that legal?

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They certainly are entitled to place a lien on the property for owed money... and they certainly are allowed to charge interest on everything owed... including the fees until the owed money is paid.

Its not really any different than a mechanics lien... if you refuse to pay the guy that dug up the tree stump in your yard.. he can have a lien placed against your house for example.

Actually foreclosing as a result is kicking that up a notch... and someone more familiar when that could legally be done will have to answer that.

Thank you both for responding. I appreciate help

Yes, whenever some type of utility is not paid (depending on the state), they are allowed to put a lien (a document that gives that particular utility company ownership over your home) and if that lien is not paid, then they will put you through foreclosure.