SUMMIT·RIDGE
Financial

Collections and Delinquency

The Board adopted a formal Collection Resolution on October 20, 2017 (signed by Suzanne Wizer, Secretary). The Resolution implements a uniform collection procedure and engages Vial Fotheringham LLP ("VF") to handle collections under a Collection, Foreclosure and Enforcement ("CFE") Agreement (Source: Collection Resolution Recitals).

When an assessment is delinquent

Interest, late charges, and costs

Procedure

  1. Notice of Claim of Lien — The Association or its agent may cause a notice of claim of lien to be recorded in Multnomah County Records when an assessment is levied (Source: Collection Resolution § 3.1).
  2. Association Payment Demand Letter — Sent on delinquency: includes amount due, demand for immediate payment, statement that if unpaid by the turnover date the account will be referred to VF, and statement that the Owner is responsible for collection costs (Source: § 3.2).
  3. Turnover to VF — If unpaid by the turnover date in the demand letter, the account is referred to VF. Thereafter all contact with the Owner regarding the account must be with VF (unless VF consents otherwise) (Source: § 3.3).
  4. VF Initial Notice — VF sends a written notice of delinquent balance to the Owner. If a Notice of Claim of Lien hasn't been recorded, VF records one (Source: § 3.4).
  5. Final VF Payment Demand — If unpaid (or no payment plan reached), VF sends a final demand for payment of all moneys due within 10 days (Source: § 3.5).
  6. Legal Action — If still unpaid (or no payment plan), VF, on behalf of the Association, initiates a personal money judgment lawsuit or forecloses the Association's lien (Source: § 3.6). The Association may also bring an action for a money judgment without foreclosing or waiving the lien — recovery on judgment satisfies the corresponding portion of the lien (Source: Declaration Article IV § 8.B(3); 2017 Second Amendment 2A (Collection) § II).
  7. Execution / Enforcement of Judgment — Garnishment of bank accounts, garnishment of wages, writs against real or personal property, or any other legally available method (Source: § 3.7).

Payment Plans

After an account is turned over to VF, any proposed payment plan must be approved by both VF and the Board (Source: § 3.8). All payments thereafter must be made to VF (Source: § 3.9).

Disbursal of Funds

Unless otherwise agreed by VF and the Board, payments received are split 50/50 between past-due assessments + non-attorney collection charges and attorney-related charges/fees, until one expense category is paid in full; remainder goes to the other category (Source: § 3.10).

Suspension, Acceleration, Foreclosure

If unpaid >30 days, the Association may:

(Source: Declaration Article IV § 8.B.)

Owner Notification Duty

It is the Owner's sole responsibility to notify the Association in writing of any change of mailing address (Source: Collection Resolution § 3.11(b)). The owner remains responsible for ensuring assessments are paid when due regardless of the procedure (Source: § 3.11(a)).

Other Remedies

Nothing in the Resolution prevents the Association from taking other actions, including (where allowed by governing documents and the Act) terminating utilities or preventing access to recreational/service facilities (Source: § 3.11(c)).

First Mortgagee Notice

The Board must notify any first mortgagee of any Owner default not cured within 60 days (Source: Declaration Article IV § 8.C). Eligible Holders are also entitled to notice of delinquencies continuing 60 days (see Mortgagee Rights).

Sources