Pacific Association Collections - PAC
Q. What happens when a delinquent homeowner files for bankruptcy and does not move out?
A. The filing of a bankruptcy petition does not guarantee the property owner that the HOA or mortgage lender will never be able to foreclose. In most cases, a bankruptcy only buys the debtor a few months before a foreclosure takes place. In addition, all assessments incurred after the bankruptcy filing date can be collected by the HOA without regard to the bankruptcy as long as the debtor is either living in the property or renting it.
Q. Can PAC help our community association establish a collection policy?
A. Yes. We can assist your HOA in establishing a customized written collection policy that complies with the law, is consistent with your association's CC&Rs, and that makes the collection process easier and faster. A sample collection policy has been provided on this site. We recommend that an attorney review and approve any proposed collection policy before your association adopts one.
Q. How does the non-judicial foreclosure process work?
A. The process is complex, however, we have created a Timeline of the Non-Judicial Foreclosure Process which provides the major steps.
Q. Does a non-judicial foreclosure require the filing of a law suit?
A. No. No court action is required to be filed by the homeowners association seeking to foreclose non-judicially.
Q. Does the board have a legal duty to take collection action against delinquent homeowners?
A. The board has a duty to do what is in the best interest of the HOA and to treat all homeowners equally. When a homeowner is not paying their assessments, for any reason, the board must take every reasonable step to collect the money. This almost always means hiring a qualified assessment collection firm like PAC.
Q. How does our community association start the process?
A. You may utilize the Collection Agreement on our website, or you may call us to get started. No money is required.
Q. Do you have experience in collecting delinquent assessments where the owner of the unit is deceased and the property is in probate or will soon be in probate?
A. Yes. We have collected delinquent HOA assessments under these circumstances many times over a period of more than 33 years.