To assist Board Members with a better understanding about the Collections and Lien Foreclosure process, we have created the following Step-by-Step Outline of how these cases are typically processed being that the case is not otherwise unique or unusual.

The Stages of Lien Foreclosures (Association’s Case)

The abbreviated version of the collection process is (the number of days on certain items varies depending on a Homeowners Association (45 days) or a Condominium Association):

1. Late notices are sent to delinquent owners in regards to their unpaid monthly/quarterly/ yearly assessment.
2. Notice of Intent to Lien letter (Demand Letter sent by Attorney or Association) is sent to the owner(s) stating that if payment is not made within 30 days, then a Claim of Lien will be filed with the County.
3. If no payment is received within the 30 day time period, Title Search is requested and Claim of Lien is filed with the County Clerk of Courts.
4. Attorney sends Notice of Intent to Foreclose letter to the Owner(s) stating that if payment is not made within 30 days, then Lien Foreclosure will be filed with the County Clerk of Courts.
5. If no payment is made within the 30 day time period, an updated Title Search is requested and Complaint of Foreclosure is filed with the County Clerk of Courts.

These are the abbreviated typical court case steps once the court case is filed with the Clerk of the Court (Bank Mortgage Foreclosure and Association Lien Foreclosure, both follow virtually the same process):

1. Attorney sends Owner(s) and other related parties notice of Lien Foreclosure filed with Clerk of Court by way of a Summons.
2. Owner(s) and other related parties have 20 days to file an Answer with the Courts.
3. Attorney drafts Motion for Default to be entered against Owner(s) and other related parties in Lien Foreclosure and files the Motion with the Clerk of Court, Court enters Default against Owner(s) and other related parties.
4. Attorney drafts and files Motion for Final Summary Judgment with Clerk of Courts.
5. Attorney requests and sets a Hearing with the Court to hear the argument on the Final Summary Judgment.
6. Hearing takes place and the Judge rules on Final Summary Judgment.  If Final Summary Judgment is granted, the Courts will set a Sale date for the property to be auctioned. [Note:  Hearing dates are set by the courts and can be set as far out as 60 to 90 days depending on the Judge’s availability.].
7. Attorney drafts Notice of Sale to take place and furnishes it to a local paper.
8. Notice of Sale is published in local newspaper. [Note:  The Notice must be published in the local newspapers for a specified amount of time.]
9. Sale of property takes place.
10. Certificate of Sale is issued to third party or Association.
11. Certificate of Title is issued to third party or Association.
12. If the owner still resides in the property, a Writ of Possession to remove the owner is necessary and can take an additional 30 days to remove the owner from the property.  If third party takes Title to property, Attorney request the funds that were collected at the Sale from the third party be disbursed to the Association.

If you are not currently a client and have any questions about this process, please contact our Public Relations Department.   If you are currently a client, please contact our Collections Department for more information.