Pacific Association Collections - PAC
Q. If our HOA forecloses on a property, can we retain it long term and rent it out for income?
A. Yes. Your association may keep it as an investment or can sell it.
Q. How would you describe PAC's collection philosophy?
A. PAC is aggressive in that we do not waste time and we are able to utilize every legal remedy available. PAC also treats every debtor respectfully and we always comply with all federal and state laws.
Q. Our HOA has several uncollected judgments from Small Claims Courts and one from the Superior Court. Can PAC help us collect the amounts owing?
A. PAC can accept an assignment of the judgements and will then take every legal step available to collect the amounts owing. This service is generally offered on a percentage arrangement.
Q. What happens if a delinquent homeowner files for bankruptcy?
A. While bankruptcy filings are not common, bankruptcy laws exist to protect debtors by stopping all collection action. PAC can monitor the status of the bankruptcy proceedings, or under some circumstances, an attorney can seek relief from bankruptcy court by requesting an order permitting the HOA to proceed with a foreclosure. This is referred to as seeking relief from the automatic stay of the bankruptcy. During a bankruptcy proceeding, no collection action may be taken while the automatic stay is in force. That includes anything spoken or written that has the intention or is an attempt to collect the debt. PAC has extensive experience in dealing with bankruptcies.
Q. When a delinquent homeowner files for bankruptcy, does it make a difference whether a lien has been recoreded against the property?
A. It may make a big difference. In bankruptcy, a creditor, such as a homeowner association, is a secured creditor if a lien ahs been recorded while an HOA without a recorded lien is an unsecured creditor. Secured creditors are always paid before unsecured creditors. While recording a lien never guarantees payment, it often makes the difference between getting paid and not getting paid.