The Unsophisticated Member
The unsophisticated member may not understand non-judicial foreclosure, but will know a lawsuit is a serious matter, and so it more likely to respond. Read More…
Uncontested Judicial Foreclosure v. Non-Judicial
An uncontested judicial foreclosure is just as fast as a non-judicial. Read More…
Assessment Recovery Services
ROcollect is our attorney-supervised Community Association Assessment Recovery Service using a judicial foreclosure method for delinquent HOA fees. We understand that community associations depend upon its members paying their assessments on time. Our efficient and professional assessment recovery program, ROcollect, handles the uncomfortable task of collecting assessments from your neighbors and provides quick and cost-effective results.
Our goal is to recover delinquent assessments and reduce the financial hardship caused by delinquent assessment payments. ROcollect is an innovative, online, attorney-driven assessment recovery program that provides you with real-time status updates of your collection accounts anytime, anywhere.
What sets us apart from other collection programs is that we operate on a deferred-fee basis—we bill hourly for our services but payment of our legal fees is deferred. The homeowners association does not pay any fees up front. At the conclusion of each collection matter, our fees are added to the total amount due from the delinquent owner, and our fees come from the delinquent owner.
Once an association engages the ROcollect program, its matters are assigned to a Collections Manager who monitors the progress of a file from beginning to end, and who serves as the primary point of contact for questions which are not of a legal nature. New delinquency matters are quickly and easily uploaded to the site and are immediately forwarded, electronically, to the designated Collections Manager supervising your association’s matters. Questions of a legal nature are handled by the RichardsonlOber attorney assigned to your association.
ROcollect is a Community Association Assessment Recovery Service supervised by the attorneys at Richardson|Ober.
Advantages of Judicial Foreclosure:
Why is judicial foreclosure more advantageous to your association? In a declining or flat real estate market, the threat of foreclosure is less significant – many properties are ‘upside down’ with no equity, so members have less reason to pay.
In the current economy and real estate market, the association often should not take over ownership, but with non-judicial foreclosure that is the only option. If the association decides not to take the property, the money spent pursuing non-judicial foreclosure is not well-spent.
Judicial foreclosure gives the association the additional option of pursuing money damages. If the property has no equity, a money judgment is still something the member must reckon with, and gives the member another reason to pay.
A money judgment is normally followed by recording an ‘Abstract of Judgment’ in the debtor’s county of residence. The judgment is valid for ten years and is renewable. The member who is unable to pay today may be able to pay as their circumstances improve.
The unsophisticated member may not understand non-judicial foreclosure, but will know a lawsuit is a serious matter, and so is more likely to respond.
The sophisticated member who is making the conscious choice to ‘play out the string,’ because there is no equity to save, will be more concerned about the additional risk of a money judgment.
With judicial foreclosure, the member receives a claim not from a debt collection company, but from the HOA’s attorney – once again, making it more likely the member will recognize this as a serious matter.
Judicial foreclosures are not required by law to start completely over if a technical flaw is found in the notices, while non-judicial foreclosures must start completely over. A technical error with the lien has no bearing on the lawsuit for damages (Civil Code Section 5700)(b). In the meantime, any error in the lien is corrected and moves forward from that point, while the lawsuit claim for money damages continues to proceed.
An uncontested judicial foreclosure is just as fast as a non-judicial. The owner is in default 30 days after the suit is filed and served, and default judgment papers are filed with the court.
Should a lending institution foreclose on the property, wiping out an association’s lien, the association still has a money damages claim in progress.
Non-judicial foreclosure is often regarded as unfair, because the homeowner has no ability to contest the matter, and because of the ability to take away someone’s home without a court supervising the matter.
Myths About Judicial Foreclosure
Myth #1 “It takes longer”
This is not true. Most matters are uncontested, and the uncontested judicial foreclosure takes about the same time as the normal non-judicial foreclosure process. In fact, once the lawsuit papers are served, the delinquent owner only has 30 days to respond, or default judgment papers can be filed.
Myth #2 “Far too expensive”
Again, not necessarily true, and certainly not true with ROcollect. Some law firms do treat assessment collection cases as if they were normal business lawsuits, and ‘run the meter’. If the law firm is not efficient in its handling of the files, its fees will be more. With ROcollect most of the fees are task-based and the cost for most of the tasks are capped by the nature of the fixed task-based fee.
Myth #3 “We can’t afford to pursue these claims”
This is a myth. Judicial foreclosure by a highly efficient law firm should cost about the same as a non-judicial matter.
Myth #4 “We will have to pay each month’
Not true. With ROcollect, the fees are deferred to when the owner pays, or when a judgment is obtained from the court (whichever is first).
Myth #5 “I cannot get status reports when I need them”
This is not a problem when you use ROcollect. Status reports are always available and can be created by the client or manager in about three mouse clicks. The status reports can be printed, or simply e-mailed to the Board.
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