How does an HOA collect delinquent assessments?

In Delaware, Homeowners Associations (HOAs) are required to collect delinquent assessments according to Delaware’s Homeowners Association Act. When an HOA member neglects to pay an assessment on time, the HOA must take steps to collect the delinquent amount. Firstly, the HOA is required to send the member a Notice of Default and Right to Cure. This notice must be sent by certified or registered mail and will include information about the amount of the assessment that is past due, the complete amount due, and a list of any additional fees that are associated with the delinquency. The member will have a thirty-day period to pay the delinquent amount before any action is taken. If the member doesn’t pay the assessment after the thirty-day period, the HOA may take further steps to collect. This may include filing legal action such as a district court suit or may involve the HOA placing a lien on the members’ property. The lien is a legal document that allows the HOA to collect a sum from the member in order to pay the debt. If further action is taken, the HOA may implement collection fees to the delinquent amount. This includes any court fees that the HOA may have had to pay during the collection process. Therefore, if a member’s assessment is late, the HOA is legally required to take steps to collect the delinquent amount. This process usually includes sending a Notice of Default and Right to Cure, legal action, and possibly placing a lien and collection fees on the members’ property.

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How does an HOA collect delinquent assessments?

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