Association boards must offer payment plans before foreclosing homes

The association board must make reasonable efforts to contact the owner or member and offer a reasonable payment plan before filing for foreclosure. This applies to condominium unit owners and planned community members who are delinquent on assessments. The board must make these efforts before filing a foreclosure action.

The association must send written notice before authorizing an attorney or certain collection agencies to begin collection activity. This applies to delinquent accounts for unpaid common expense assessments. It covers collection work by an attorney or a collection agency that is not acting as the association's managing agent. The notice must say the account may be sent for further collection, which could include foreclosure, and provide contact information to discuss payment. The notice must be sent by certified mail with return receipt requested. The association must send the notice at least 30 days before authorizing collection activity. The 30 days to pay or arrange an approved plan run from the notice date.

The association must apply payments to assessments and related collection costs before applying any remainder to other fees, charges, penalties, or interest. This applies to payments received on a condominium unit owner's or planned community member's account. The owner or member may direct the association to apply payments otherwise. Late assessment charges must be allowed by the declaration, and attorney fees and costs must have been awarded by a court.

The association may not enforce owner or member expenses as common expense liens; it has a judgment lien only after a court judgment is entered and recorded. This applies to expenses owed by condominium unit owners and planned community members, apart from common expense assessments. The judgment lien may not be foreclosed and takes effect only when an interest in the property is conveyed. The judgment lien takes effect only on conveyance of an interest in the property.