HOA and Condominium Collections
ReadyCOLLECT - Collections Online Portal
We understand that there are many parties involved with the assessment collection process including Association Board Members, Association Management Companies, and Attorneys. That is why we utilize the state-of-the-art online portal called ReadyCOLLECT to help consolidate, organize & streamline assessment collections and fines associated with violations. ReadyCOLLECT provides 24/7 web portal access to Association Board Members and Association Management Companies to access detailed, up-to-date information regarding the status of your collections accounts. Beyond providing information, ReadyCOLLECT provides accountability and transparency for Association Board Members and Association Management Companies
Experienced Attorneys and Staff
We are a full service law firm with 5 experienced attorneys dedicated to Condo/HOA law and collections. Our experienced attorneys are supported by 3 full-time collection staff that are ready to assist Association Board Members and Association Management Companies. We pride ourselves on our customer service and availability.
Collecting Delinquent Assessments - Process:
The collection of assessments is vital to the operation of an association. An association’s failure to timely collect assessments from all owners may impede the board’s ability to carry out its responsibilities in the administration of the association, including the preservation and enhancement of property values. This could expose board members to claims for breach of fiduciary duty. Our attorneys are skilled at the prompt and efficient collection of assessments. We have been collecting delinquent assessments for associations for more than 30 years and have designed an extremely successful and highly effective collection process. Our collection department works closely with the board and managing agent to maximize the collection of past due assessments as well as the recovery of legal fees and costs.
The Illinois Condominium Property Act, the Illinois Common Interest Community Association Act and the Eviction Act set forth the procedures available to an association for recovering unpaid assessments. Section 9-102(a)(7) of the Eviction Act provides that an association is entitled to temporary possession of a unit (13 months of possession) when a unit owner fails or refuses to pay their assessments. The initiation of the right to possession is the service of a demand notice in compliance with Section 9-104.1 of the Eviction Act, which provides the unit owner with 30 days to pay the amount claimed in order to avoid the initiation of a lawsuit to take possession of the unit. An action for the right of possession under the Eviction Act does not transfer ownership, rather it transfers the right of possession from the unit owner to the association so that the association can rent the unit and apply rent payments to the unit owner’s delinquent assessment account balance. The right to possession transfers back to the unit owner once all outstanding assessments as well as the association’s attorney’s fees and costs incurred in the collection of assessments have been paid in full.
- Order a tract book search to verify title and perform a bankruptcy search.
- Depending on the amount of delinquency, a collection letter is sent to the owner.
- Serve a 30-Day Notice and Demand for Possession Pursuant to the Eviction Act.
- File a lien against the property.
- File a complaint against the delinquent owner under the Eviction Act.
- Obtain a money judgment against the owner and an Order for Possession of the property after we obtain service.
- Eviction, if judgment is not satisfied. If the Unit is currently being rented, the Association may negotiate an Assignment of Rents with the current tenant.
Certain circumstances such as a request for payment plan by a homeowner or the filing of a foreclosure against the property or an owner filing bankruptcy may require an adjustment of these principal steps.
*Our collection related services are based on flat fees for services performed. Certain circumstances may arise that require us to deviate from the flat rate, but all fees and costs are discussed prior to work being performed. The legal fees and costs associated with collecting assessments may be charged back to the homeowner’s account, which our attorneys will then seek reimbursement from the homeowner.