Condo & HOA Collections Attorneys
Serving Michigan and Illinois Community Associations
Condo & HOA Collections for Community Associations
Community association boards generally have a fiduciary duty to levy and collect assessments as required by the governing documents. Delayed or inconsistent collections can create cash flow problems and impact the long-term financial stability of a condo or HOA.
We advise condominium and homeowners associations on how to recover unpaid assessments and follow a collections process that is:
Aligned with the governing documents
Consistent with the association’s collection policy
Designed to recover assessments as efficiently as possible
Hirzel Law represents community associations throughout Michigan and Illinois, including Metro Detroit, Grand Rapids, Traverse City, Chicago, and the Chicago suburbs.
What We Handle
Common Condo & HOA Assessment Recovery Issues
Hirzel Law regularly advises condominium associations and homeowners associations on assessment recovery issues, including:
The appropriate collections strategy depends on the governing documents, the age of the delinquency, the amount owed, and the community association's overall financial condition.
Our Services
How Our Community Association Lawyers Help Collect Assessments
Hirzel Law assists community association boards at every stage of the collections process, including:
Collection Policy and Document Review
- Reviewing governing documents for assessment and lien authority
- Drafting or updating written collection policies
- Advising boards on when accounts should be escalated
Demand Letters and Early Resolution
- Sending formal demand letters for delinquent assessments
- Advising on late fees, interest, and recoverable attorney’s fees and costs
- Structuring payment plans when appropriate
Liens, Evictions, and Foreclosures
- Recording condominium and HOA liens
- Pursuing nonjudicial foreclosure where available
- Handling judicial foreclosure and eviction actions
- Protecting association interests in mortgage foreclosure cases
Bankruptcy and Post Foreclosure Issues
- Representing community associations in bankruptcy proceedings
- Advising on ongoing assessment obligations
- Recovering post-foreclosure assessments
Our approach to collections is deliberate and efficient. The goal is to recover HOA assessments without incurring unnecessary expenses or delay.
Frequently Asked Questions
Condo & HOA Collections FAQs for Community Associations
Yes. Boards generally have a fiduciary duty to levy and collect assessments as required by the governing documents. Failure to pursue delinquent assessments can shift financial responsibility to compliant owners and weaken the association’s legal position.
Boards should involve a community association attorney when assessments remain unpaid after notice, when a delinquency reaches the threshold set in the collection policy, or when legal remedies such as liens, eviction, or foreclosure may be required.
In Michigan, the collections process typically begins with a formal demand letter, followed by recording a lien if the delinquency is not resolved. The majority of association collection files are resolved after sending a demand letter and placing a lien. In the remaining circumstances, community associations then pursue nonjudicial foreclosure to recover unpaid assessments, with judicial foreclosure used less frequently for longer or more complex matters.
In Illinois, the collections process usually starts with a demand letter and, if assessments remain unpaid, proceeds with an eviction action to remove the owner until the delinquency is resolved. Judicial foreclosure is also an available option, but it is generally a longer process and is used less frequently depending on the circumstances.
In many cases, yes. Most governing documents allow a community association to recover reasonable attorney’s fees and costs incurred to collect delinquent assessments, which helps prevent collection expenses from being shifted onto compliant owners through higher assessments.
A bankruptcy filing does not eliminate all assessment obligations. Associations often retain the ability to recover post-petition assessments and, in some cases, unpaid amounts through the bankruptcy process.
Resources
Condo & HOA Collections Resources
The collections process differs between Michigan and Illinois. Boards seeking additional state-specific guidance may find the following resources helpful:
Why Hirzel Law
Why Boards Choose Hirzel Law for Community Association Assessment Recovery
Hirzel Law is not a general real estate firm that occasionally handles community association issues. Condo and HOA law is our focus. Given that the ability to efficiently collect assessments directly impacts cash flow, general operations, and reserve funding, it is important to have an experienced community association guide you through the collections process.
Condo and HOA boards rely on us because we:
- Have represented over 2,000 clients on condominium and homeowners association issues
- Focus our practice on community association law
- Serve condominiums and homeowners associations throughout Michigan and Illinois
- Are actively involved in the Community Associations Institute (CAI)
- Have received peer recognition from Best Lawyers, Leading Lawyers, and Super Lawyers
- Are responsive, results-oriented, and provide resources to educate our HOA clients
Our goal is to help boards recover unpaid condo and HOA assessments as efficiently as possible, so delinquencies are quickly resolved.