Don’t Drag Your Feet on Delinquent Owners – It Could Cost You
Community associations often drag their feet when it comes to filing liens against delinquent owners. The reluctance can be understandable — who, for example, wants to take such a step against a neighbor who has lost a job or racked up medical bills? But this reluctance can prove costly, as one Nevada association recently learned the hard way.
The owner in the case purchased her Las Vegas home in 2008. On March 1, 2009, she failed to pay her monthly assessment to the HOA. The HOA assessed a late fee on March 10, 2009.
On June 26, 2009, a debt collector working on behalf of the HOA sent her a letter via certified mail explaining that the HOA would record a lien on her property for delinquent assessments if she failed to make her payments.
The debt collector recorded a delinquent assessment lien in the amount of $832.33 on July 21, 2009. It sent the owner a copy of the lien, again via certified mail, on July 24, 2009.
Unbeknownst to the HOA, the owner had fallen behind on her federal income tax obligations years before she moved into the community. She had outstanding tax liabilities for 2003, 2006, and 2007, and the IRS filed notices of federal tax liens on May 1, 2009, and June 24, 2009.
So whose lien had priority — the HOA or the IRS?
Read the full article now and learn why it pays to move quickly when your association is owed money: