The written policy governing how the HOA pursues unpaid dues, assessments, and fines.
A collections policy documents the exact steps and timelines the HOA will follow when an owner falls behind — when late fees are added, when interest accrues, when the account goes to an attorney, when a lien is filed, and under what circumstances foreclosure may be initiated. The policy must be adopted by the board and distributed to all owners, as required in many states. A consistent, evenly-applied collections policy protects the board from discrimination claims and ensures the community collects the revenue it needs to function. Collections policies vary widely but typically include a 30-day notice, a 60-day cure period, and a 90-day threshold for attorney referral.
Boards without a written collections policy often apply inconsistent standards, exposing themselves to fair-housing liability and allowing delinquencies to grow unchecked. A clear policy is both a legal protection and a financial discipline tool.
Delinquency
The status of an owner account when dues or assessments are past their due date and unpaid.
Lien
A legal claim against a property securing payment of an unpaid HOA debt.
Foreclosure
The legal process by which the HOA forces the sale of a property to satisfy an unpaid lien.
Delinquency Threshold
The unpaid balance or number of days past due that triggers escalated collection action.
LotWize handles collections policy tracking automatically — along with violations, ARC requests, meeting minutes, and homeowner communications, all in one platform built for self-managed HOAs.
Start 14-Day Free TrialThis page provides general information only — not legal or financial advice. HOA laws vary by state and community. Always consult your governing documents and an HOA attorney for guidance specific to your situation.