Collections

Things to Consider

• Who is the debtor?
• Are there assets?
• What is the likelihood of recovery?

Who is the Debtor?

Assets

Writ of Garnishment

Bank Levy

Foreclosure

Judicial Foreclosure

When to Foreclose

• Chronically delinquent account
• "Judgment proof" account
• Large balance
• Can't locate debtor
• Equity in property

Benefits of Foreclosure

• High rate of recovery
• Stops habitual delinquency
• Sends message
• Increases revenue
• Forces transfer of ownership

Foreclosure Steps

• Evaluation
• File suit
• Wait for answer -->default or trial date
• Sheriff sets sale date
• Association submits written bid

Foreclosure Steps Con't

• Sold to highest bidder
• Redemption period
• Association paid in full or receives title
• Often subject to first mortgage

When the Association Takes Title