HOA Blues

Whoever thinks real estate investing creates passive income, take my most recent experience into consideration!!

Just attended HOA board meeting to resolve a convoluted HOA dues situation, after already having spent many hours trying to resolve it unsuccessfully with management company and collection agency.

Had a property close in May 2008. Settlement statement showed payoff amount to HOA and an advance payment for July 2008. Therefore set up automated payments to go out beginning August 2008.

Next thing I know, a collection agence letter arrives in January 2009 with 4 of these checks enclosed, indicating there was a $2400 balance due and the checks were insufficient to pay off debt!!!

To summarize the events that led to this - HOA had bigger balance on books than payoff demand (approx $600) - cashed the first two bank drafts and then sent account to collection. Had wrong mailing address, so no notice received until January 2009.

Was told by collection agency that they could not do anything other accept the full payment on their books unless otherwise advised by HOA. HOA said same thing in addition to informing me that they would not be accepting any current payments!!

Lots of emails and phone calls back and forth, including an attorney letter with no real resolution largely due to difficulty in dealing with HOA management company.

Anyway, off I go to the meeting with all of my documentation. Finally ending up with unanimous decision to waive all late fees, accept payment and move forward!!

Total time involved between myself and JV partner was over 10 hours!!

Now, onward and upward. Still a shortage of inventory, but sources indicate a flood of more REOs being released Mid May and beyond.

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Happy investing.