Does the association accept payment plans and are there
circumstances when they would not be accepted (such as after the
account is with the attorney or after the eviction is scheduled)?
What is the maximum length of time for payment plans?
Is the association willing to reinstate a payment plan after default?
If so, how many times?
Example Response
"The association will accept payment plans until the eviction has been scheduled. At that
point, payment must be received in full. Payment plans cannot exceed 12 months in length.
If a homeowner's balance is more than 50 percent paid during their initial payment plan,
the association will reinstate a defaulted payment plan one time only. If the payment plan is
defaulted a second time, the balance is due in full, or the next collections actions will be taken."
Usually the board must make the decision whether or not to allow payment plans; they are not
normally mandated in other governing documents. Payment plans can be beneficial for boards and
communities as long as they're reasonable – if the homeowner is making their regular assessment
payment and a payment that will get them current in a reasonable amount of time, then it can be a
great way to get the homeowner caught up without excessive attorney fees. What is a reasonable
payment plan? Three months if they aren't too far behind and their account isn't already with the
attorney, and usually no more than 12 months once their account is with the attorney's office. Your
community association manager can provide input for your community based on your state laws
and local practices. Even if the homeowner defaults on their payment plan, the association has still
recouped some of its expenses, and can proceed with the next step in the collections process.
