Orchidland Road Fee

[My 2 cents]

Right to charge, request lien judgement, file lien, but not forclose: http://www.harc4u.com/wp-content/uploads...dgment.pdf

It seems that everyone wants to skip over "request lien judgment". Of course, because that is the expensive, cumbersome part where you have to prove the validity of your claims in court.

[Guest]

I don't understand the many different bylaws or why they are so different from association to association. Other places in Puna like the beach lots in Kapoho would simply change their Bylaws to benefit the ones living their TODAY.

http://hawaiitribune-herald.com/sections...ected.html

I believe the Kapoho beach lots association was able to change some of their bylaws in 2010 which has allowed them to change drastically over the past 5 years.

[randomq]

quote:

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Originally posted by My 2 cents

Right to charge, request lien judgement, file lien, but not forclose: http://www.harc4u.com/wp-content/uploads...dgment.pdf

It seems that everyone wants to skip over "request lien judgment". Of course, because that is the expensive, cumbersome part where you have to prove the validity of your claims in court.

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That's certainly a failure of the judicial if true. A repetitive and routine request for summary judgement should not be expensive or cumbersome. Seems like they could be done in batch once a year!

[My 2 cents]

“Obtain a judgment against the property owner”, “get a judicial determination of the amount”….These are just polite ways of saying you have to sue the property owner for the alleged amounts.

Step 1. Hire an attorney. This is not optional. Corporations in Hawaii cannot represent themselves in court. They are required by law to hire legal counsel. Ka-ching!

Step 2. As with any lawsuit, the plaintiff must provide proof that the defendant has been notified of the complaint. This will require hiring a process server.

Considering that only $600 is legally collectable, how are we doing so far? This is the best case scenario, and it assumes that the defendant will not challenge in any way. If he does, then the attorney’s fees skyrocket.

Bottom line, between the requirement to use an attorney and the small amount of award on final judgment, and the huge risks involved, collections for OLCA are simply not feasible.

[Obie]

This is why I suggested OLCA change the bylaws.Many other HOA's have no problem filing liens and eventually collecting.
Here is the bylaw from my HOA :

D. Delinquent Assessments
Any assessment unpaid one hundred twenty (120) days after the due date of the same shall be
delinquent. Interest thereon from the original due date shall be charged at the rate of eighteen
percent (18%) per annum.
E. Lien for Assessments
A delinquency lien for any delinquent assessment unpaid twenty-four months from the
original due date shall be filed with the Bureau of Conveyances of the State of Hawaii. The
Treasurer shall prepare the necessary filing forms for the signature of the President and
Secretary and the affixation of the Corporate Seal and forward them to the State without delay
or further action by the Board.

[My 2 cents]

Obie, I don't see foreclosure in the bylaws you quoted. Foreclosure would make collections much easier for your HOA. So why not just change your bylaws to include foreclosure?

[leilanidude]

Foreclosure would cost the HOA more than it might be worth, plus, do you really want the HOA capable of doing so? Filing the lien along with a high interest rate assures an eventual payout with much less cost and hassle.

[Obie]

quote:

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Originally posted by My 2 cents

Obie, I don't see foreclosure in the bylaws you quoted. Foreclosure would make collections much easier for your HOA. So why not just change your bylaws to include foreclosure?

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It's in our bylaws but for the reasons you state we don't use it.Most of the worst delinquencies are on unbuildable lots,so there is no point.
At some point we will collect!

This is the title of the bylaw:

ARTICLE XI:ASSESSMENTS AND RIGHT OF LIEN

Here is the foreclosure definition :

F. Suit to Recover Judgment
The Corporation may, at its sole option, elect to foreclose upon a lien, or sue to recover
money judgment for any unpaid assessments and such suit may be maintained without
foreclosing or waiving the lien. If suit is brought, the Lot Owner shall be responsible for all
costs thereof, including reasonable attorney's fees.

Written by our attorney !

[My 2 cents]

Originally posted by My 2 cents

Obie, I don't see foreclosure in the bylaws you quoted. Foreclosure would make collections much easier for your HOA. So why not just change your bylaws to include foreclosure?

Sorry, I was trying to use sarcasm to make a point. Lesson learned.

[terracore]

The Orchidland HOA lost over $40,000.00 in attorney's fees trying to foreclose on a property and learned the hard way that the only legal way to collect was to file a lien and wait for the property to get sold.