09-06-2016, 10:03 AM
quote:
Originally posted by My 2 cents
Most of the road associations just put a lien on the property.
True, but then you quote the OLCA Bylaws:
Upon any lot owner becoming delinquent for more than one year after the due date for payment, the BOD may enforce collection by obtaining a judgment against the property owner for the payment of MRMA, and then registering the judgment with an assistant registrar of the Bureau of Conveyances or Land Court of the State of Hawaii.
Therein lies the problem. With the fees at $100 per year and the statute of limitations at 6 years, the question becomes: Can we hire an attorney and go through the judicial process for less than $600? The answer is “probably not”, and if the court action is challenged in any way then the answer becomes “definitely not”.
This is strangely ironic. About 10 years ago OLCA began using foreclosure as a tool for collections, knowing that the law did not support it. The premise was “No one will fight this. No one is going to spend 5 or 10 or $20,000 to avoid paying a $1000 bill.” They were wrong, and now they are faced with the same dilemma.
To be fair, that was a different BoD, and this group obviously sees and respects the dilemma. That’s why they are looking for different angles.
They just file a new lien every 5 years.