Need Help With Collection Procedures?
In an effort to assist our condominium and homeowner association clients in collecting funds while not negatively impacting their cash flow, we defer our legal fees and front most collection-related costs. We do not charge up front but instead collect our legal fees and costs, as well as association maintenance fees in arrears, directly from the unit owners. We also defer our fees for defending associations in bank foreclosure cases. The condominium association or homeowner association will not be billed for our work related to maintenance collection, with certain limited exceptions.
When required to go to litigation (foreclosure), the law firm will request a cost deposit from the condominium or homeowner association for the court filing fees and service of process costs, and then at the end of the procedure, seek reimbursement from the unit owner. The cost deposit will not be used for legal fees. Our goal is obviously to expedite the collection procedure because Cuevas, Garcia & Torres, P.A., does not get compensated until the unit owner pays.
Therefore, we are very aggressive with collections, which is beneficial to our condominium and homeowner association clients. By following this procedure, we have been able to assist our clients in substantially decreasing their account receivables. We also provide online access to the status of all cases, through our law firm website, so that our condominium and homeowner association clients can see where we are with their matters. The online status report is available solely to boards of directors and property managers. The online system is real time, i.e., it is not a report that is uploaded periodically. The online system reflects the work performed on the collection case as the work occurs.
Furthermore, in the event that a unit owner files for bankruptcy protection and obtains a discharge of debts or a first mortgage holder successfully forecloses on the property, we will not send a bill to the association but instead seek payment from the lending institution or any new owner, if possible.