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What is the amount of the late fee, and on what day of the month is the payment considered late? Example Response "Assessments are due monthly on the 1st of each month, and a $25 late fee is charged on the 15th of the month." This may already be outlined in your Declaration or other governing documents, but it should be reiterated in your collections policy. This is an establishing piece of information for your document, and many other decisions you'll make in its creation are predicated on the late fee and its timing. What letters are sent to a delinquent homeowner before their file is turned over to our attorney for collection, and at what intervals are they sent? Example Response "Our management company sends a reminder notice with a late fee between the 15th and 18th of the month and a final letter between 35 and 40 days (after two assessments have gone unpaid.) The final letter incurs a $35 fee charged to the homeowner." Oftentimes, your management company will send a final reminder notice before the account is turned over to collections, which usually incurs a fee that is charged to the homeowner. This fee is still less expensive than what the association's attorney will charge to send a letter, which is why many associations opt to take these extra steps before turning an account over to an attorney. When is a file turned over to our attorney for collection? Example Response "Accounts are turned over 15 days after our management company's final letter is sent, so between 50 and 55 days." This may already be outlined in your Declaration or other documents, but again, details like this are important to note because they will become critical parts of your collection policy. Each state is different regarding how collections are done; with some a lien is filed, or for example, in Illinois, the procedure is to send a 30-day demand notice and then begin a Forcible Entry and Detainer Action, with the power to take possession of the unit and evict the homeowner if the balance isn't paid.

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