If your account has been turned over to collections, it means your HOA dues or fees were not paid by the required dates, and the association has handed your account over to a collections firm to recover the balance. Here’s what you need to know about why this happens, why it matters, and how to prevent it.

Why Accounts Are Sent to Collections

When a property owner fails to pay their dues or fees on time, the association may escalate the matter by turning the account over to a collections firm.

Important Communication Note

Once your account is in collections:

  • All-In-One will no longer communicate with you about the balance or payments.
  • All communication must go through the collection firm handling your account.

Why Collections Are Important for HOAs

Collections ensure the community has the funds needed to operate smoothly and maintain property values. The money recovered from delinquent accounts supports:

  • Maintenance and Repairs: Landscaping, utilities, and upkeep of common areas like pools and amenities.
  • Reserve Funds: Savings for unexpected expenses and long-term improvements, helping avoid sudden special assessments.
  • Administrative Costs: Legal fees, insurance, and management expenses necessary for smooth operations.
  • Community Activities: Events and programs that enhance neighborhood life.

How to Avoid Collections

  • Pay Dues on Time: The simplest way to avoid collections is to stay current.
  • Communicate Early: If you can’t pay by the due date, contact our team immediately. We may be able to work out a payment plan with your association.

What to Do If Your Account Is in Collections

  • Contact the Collection Firm Immediately: This can help prevent additional collection fees from being added to your balance.
  • Discuss Your Situation: Work out an agreement to pay in full (PIF) or set up an approved payment arrangement.

FAQ: HOA Collections Explained

Why was my account sent to collections?

Your account was turned over because dues or fees were not paid by the required deadlines, and prior notices were not resolved.

Can I still work with All-In-One to resolve my balance?

No. Once your account is in collections, all communication must go through the collection firm.

Will collections affect my credit?

Yes, unpaid HOA balances sent to collections can negatively impact your credit score.

Can I set up a payment plan after my account is in collections?

Maybe, but it must be arranged directly with the collection firm, not All-In-One.

How can I avoid collections in the future?

Pay dues on time and communicate early if you anticipate payment difficulties. Many associations offer payment plans before accounts are escalated.

What happens if I ignore the collection notice?

Ignoring collections can lead to additional fees, legal action, and even foreclosure in extreme cases.