The Legislature adopted new restrictions on all community associations’ ability to foreclose on homes for delinquent assessments. These restrictions are found in HB 1482. Key Provisions: You cannot start a foreclosure if less than 3 months of regular dues or $200 (whichever is larger) is delinquent. You cannot count fines, late fees, interest, or attorney…
Category Archives: Collections
WUCIOA – What is it, and why should my community association care? Topic 1 – Collections
If you have owners who don’t pay their dues, WUCIOA is better for most communities. (But this is not legal advice for your specific association) The Washington Uniform Common Interest Ownership Act (WUCIOA) is a new law that takes effect on July 1, 2018. Most of it only applies to HOAs and Condos created after…
Association Required to Provide Names and Addresses of Delinquent Owners
The Kansas Court of Appeals held that Kansas law requires a homeowners association to disclose the names and addresses of delinquent homeowners. Although this case was decided in Kansas, it could be an indication of how a Washington court might decide a similar issue. The recent case of Frobish v. Cedar Lakes Village Condominium Association concerned…
Are Management Companies Debt Collectors?
A federal court in Indiana recently ruled that a management company is not a debt collector subject to the Federal Fair Debt Collection Practices Act (FDCPA or “the act”) if the owner is not delinquent when the management company is hired by the association. This court’s interpretation of the statute is persuasive, but not binding,…
Court Upholds Association Foreclosure for Unpaid Fines
A Connecticut court recently upheld a foreclosure action after an owner refused to pay fines assessed for her failure to construct a deck in accordance with board approved plans. Although this case was decided by a Connecticut court and is not binding in Washington, it demonstrates how a court in Washington might decide a similar…
Receivership – Brief Overview
When a condo association files a foreclosure lawsuit, it is entitled to ask the court to appoint a “custodial receiver” who takes over the property, rents it out, and pays the proceeds consistent with guidelines in the Condominium Act (RCW 64.34.364(10)). As a practical matter, once appointed, the receiver rekeys the unit (assuming it is…
Restricting access to common area roads: a “high risk” activity for Washington HOAs
When owners are delinquent in paying assessments, an Association may wish to penalize the owner and provide an incentive to pay by restricting that owner’s access to common areas. A Washington HOA probably can restrict access to common areas such a pool or cabana, if its governing documents specifically authorize such an act. But can…
Tenants in Foreclosed Properties
Many clients and associations in general (both condos and HOAs) are in possession of properties that do not have “clear title.” This puts the association in the position of wanting to rent out the property until the lender forecloses. One question we hear often is what protections, if any, exist for a tenant who signs…
Bank of America Foreclosures in Washington State
For many months, we’ve seen that Bank of America foreclosures have been completely stalled. There are a number of reasons for this, not the least of which is the fact that BOA took over a multitude of sub-prime loans when Countrywide went belly-up. More recently, however, the company BOA used (Recontrust) to conduct its foreclosure…
Why it’s Important to Act Quickly on Delinquencies
There are many reasons why it is important that associations act quickly when an owner falls behind on their dues. There are also many competing factors which tempt boards or board members not to do so. For example, many board members feel a conflict between their duty to act in the best interest of the…
Category Archives: Collections
New Foreclosure Requirements for Community Associations
The Legislature adopted new restrictions on all community associations’ ability to foreclose on homes for delinquent assessments. These restrictions are found in HB 1482. Key Provisions: You cannot start a foreclosure if less than 3 months of regular dues or $200 (whichever is larger) is delinquent. You cannot count fines, late fees, interest, or attorney…
WUCIOA – What is it, and why should my community association care? Topic 1 – Collections
If you have owners who don’t pay their dues, WUCIOA is better for most communities. (But this is not legal advice for your specific association) The Washington Uniform Common Interest Ownership Act (WUCIOA) is a new law that takes effect on July 1, 2018. Most of it only applies to HOAs and Condos created after…
Association Required to Provide Names and Addresses of Delinquent Owners
The Kansas Court of Appeals held that Kansas law requires a homeowners association to disclose the names and addresses of delinquent homeowners. Although this case was decided in Kansas, it could be an indication of how a Washington court might decide a similar issue. The recent case of Frobish v. Cedar Lakes Village Condominium Association concerned…
Are Management Companies Debt Collectors?
A federal court in Indiana recently ruled that a management company is not a debt collector subject to the Federal Fair Debt Collection Practices Act (FDCPA or “the act”) if the owner is not delinquent when the management company is hired by the association. This court’s interpretation of the statute is persuasive, but not binding,…
Court Upholds Association Foreclosure for Unpaid Fines
A Connecticut court recently upheld a foreclosure action after an owner refused to pay fines assessed for her failure to construct a deck in accordance with board approved plans. Although this case was decided by a Connecticut court and is not binding in Washington, it demonstrates how a court in Washington might decide a similar…
Receivership – Brief Overview
When a condo association files a foreclosure lawsuit, it is entitled to ask the court to appoint a “custodial receiver” who takes over the property, rents it out, and pays the proceeds consistent with guidelines in the Condominium Act (RCW 64.34.364(10)). As a practical matter, once appointed, the receiver rekeys the unit (assuming it is…
Restricting access to common area roads: a “high risk” activity for Washington HOAs
When owners are delinquent in paying assessments, an Association may wish to penalize the owner and provide an incentive to pay by restricting that owner’s access to common areas. A Washington HOA probably can restrict access to common areas such a pool or cabana, if its governing documents specifically authorize such an act. But can…
Tenants in Foreclosed Properties
Many clients and associations in general (both condos and HOAs) are in possession of properties that do not have “clear title.” This puts the association in the position of wanting to rent out the property until the lender forecloses. One question we hear often is what protections, if any, exist for a tenant who signs…
Bank of America Foreclosures in Washington State
For many months, we’ve seen that Bank of America foreclosures have been completely stalled. There are a number of reasons for this, not the least of which is the fact that BOA took over a multitude of sub-prime loans when Countrywide went belly-up. More recently, however, the company BOA used (Recontrust) to conduct its foreclosure…
Why it’s Important to Act Quickly on Delinquencies
There are many reasons why it is important that associations act quickly when an owner falls behind on their dues. There are also many competing factors which tempt boards or board members not to do so. For example, many board members feel a conflict between their duty to act in the best interest of the…
