Friends Problem HOA - Sheriff

[Lord Farquart]

our budget for the year is R3m, so 20k owing by a few owners is not the end of the world

Freeloaders are the worst kind of scum. Take his stuff and let him sleep on the floor.

 

[roadcat]

our budget for the year is R3m, so 20k owing by a few owners is not the end of the world

it really does depend on the budget of the HOA here to determine the severity of the debt in relation to the budget, but it really doesn't sound like a lot of money to me, and the owner is willing to settle, whats the problem?

Possibly a repeat offender? We get that sometimes, an owner says they will pay double for 6 months etc, which is agreed and they then renege on that 3 months down the line. Sometimes you have to play hard ball.

 

[Ancalagon]

our budget for the year is R3m, so 20k owing by a few owners is not the end of the world

it really does depend on the budget of the HOA here to determine the severity of the debt in relation to the budget, but it really doesn't sound like a lot of money to me, and the owner is willing to settle, whats the problem?

Yeah but the HOA likely doesn't have R3m sitting around in cash, unless you are saving up for renovations. Thus, even if you get R3m yearly, the HOA has to manage its cashflow. Imagine if they don't have the money to pay a particular service provider in a given month because somebody decided not to pay? They then have to get credit to pay for the service provider, which costs money.

So yes, R20k can matter depending on the finances of the HOA. It's not an insignificant amount of money.

 

[Ho3n3r]

Yeah but the HOA likely doesn't have R3m sitting around in cash, unless you are saving up for renovations. Thus, even if you get R3m yearly, the HOA has to manage its cashflow. Imagine if they don't have the money to pay a particular service provider in a given month because somebody decided not to pay? They then have to get credit to pay for the service provider, which costs money.

So yes, R20k can matter depending on the finances of the HOA. It's not an insignificant amount of money.

This.

And they need to send a message. If they set the precedent now of saying 'ag shame it's fine, pay us as you can', imagine all the freeloaders that will take advantage and trying to do the same.

 

[saturnz]

Yeah but the HOA likely doesn't have R3m sitting around in cash, unless you are saving up for renovations. Thus, even if you get R3m yearly, the HOA has to manage its cashflow. Imagine if they don't have the money to pay a particular service provider in a given month because somebody decided not to pay? They then have to get credit to pay for the service provider, which costs money.

So yes, R20k can matter depending on the finances of the HOA. It's not an insignificant amount of money.

then the HOA is poorly managed if they cannot live with a 20k debt

we had a debt of over R1m for four years owing by one owner and we eventually recovered a huge sum- however during that period the BC operated fine- I don't recall any special levies being raised to fund this shortfall.

 

[MagicDude4Eva]

Most HOAs use a management agent to run the collection of levies. Your neighbour would have gotten invoices and reminders. I don't think your HOA is well organised though, as it should hardly ever come to a case of getting a judgement. In our estate we disable access-control remotes if home-owners default for more than 2 months and the homeowner needs to then sign-in/out as a visitor - after this was introduced a few years back all defaulters paid and there are now no arrears.

 

[Ancalagon]

then the HOA is poorly managed if they cannot live with a 20k debt

we had a debt of over R1m for four years owing by one owner and we eventually recovered a huge sum- however during that period the BC operated fine- I don't recall any special levies being raised to fund this shortfall.

Why should they have to? Running with debt means they cannot run lean. If the owners are not paying, then the HOA has to incur costs either in terms of credit, or the opportunity cost of having extra money sitting around in case an owner decides not to pay. Plus, the cost of collection is not free.

It's not that they cannot function with a R20k debt, it's that they should not have to. This is why they adopt a zero tolerance approach and get a judgment if you don't pay - because it should not have to be the HOA's issue. I don't want to have to pay higher levies because some idiot decides he shouldn't have to pay for 5 months.

When you sign that contract to buy, you accept the responsibilities of being a body corporate member. This includes paying on time.

 

[roadcat]

then the HOA is poorly managed if they cannot live with a 20k debt

we had a debt of over R1m for four years owing by one owner and we eventually recovered a huge sum- however during that period the BC operated fine- I don't recall any special levies being raised to fund this shortfall.

:wtf: R1m debt on a annual R3m budget? Obviously over budget on a lot then. So they had room to maneouver. That's not so easy now with escalating costs i.e. water/services going up by 12/14% every year

 

[Mach III]

Freeloaders are the worst kind of scum. Take his stuff and let him sleep on the floor.

It's strange how someone completely foreign to you can offend you so much.

So which is it? Even your recount does not tie up. You must be good friends.

And trying to take a jibe at me for befriending him.. Oh the horror... I'm going to skip a stop street this evening in your honour Lord Fartquar.

To everyone else, thanks for your time. I agree, he should have paid timeously; and it's probably a good lesson, and I'm glad Saturnz agrees (or kind of) that it's unreasonable to not accept a willingness to pay.

I would also say that it is a completely unprofessional of this homeowners association to let a debt build up like that; especially so that a phone call or a visit would have cleared it all up.

 

[Cray]

What are his monthly levies, how many months does R21K amount to?

 

[Ancalagon]

It's strange how someone completely foreign to you can offend you so much.



And trying to take a jibe at me for befriending him.. Oh the horror... I'm going to skip a stop street this evening in your honour Lord Fartquar.

To everyone else, thanks for your time. I agree, he should have paid timeously; and it's probably a good lesson, and I'm glad Saturnz agrees (or kind of) that it's unreasonable to not accept a willingness to pay.

I would also say that it is a completely unprofessional of this homeowners association to let a debt build up like that; especially so that a phone call or a visit would have cleared it all up.

They already send him bills, now they need to phone him and ask him to pretty please pay us the money you owe?

Don't put the onus onto them. The onus is on him to pay his bills. End of story.

 

[Cray]

then the HOA is poorly managed if they cannot live with a 20k debt

we had a debt of over R1m for four years owing by one owner and we eventually recovered a huge sum- however during that period the BC operated fine- I don't recall any special levies being raised to fund this shortfall.

of course you are asssuming that he is the only one who doesn't pay his levies... I looked at the Age analysis of my HOA and there are plenty of people in 60 and 90 days debt, perhaps they can live with other debt, not sure why his monthly levy amounts to but R21k seems an excessive amount to be in debt.

 

[Lord Farquart]

then the HOA is poorly managed if they cannot live with a 20k debt

we had a debt of over R1m for four years owing by one owner and we eventually recovered a huge sum- however during that period the BC operated fine- I don't recall any special levies being raised to fund this shortfall.

Please remind where you, and the OP/friend, stay? Never want you as part of the pool of contributors.

 

[shadow_man]

They already send him bills, now they need to phone him and ask him to pretty please pay us the money you owe?

Don't put the onus onto them. The onus is on him to pay his bills. End of story.

+1 to OP and his "friend". Nobody owes you a living. Why should they make special arrangements for him?

Put on your big boy pants and pay your bills like everyone else. I forgot simply doesn't cut it?

 

[Lord Farquart]

It's strange how someone completely foreign to you can offend you so much.



And trying to take a jibe at me for befriending him.. Oh the horror... I'm going to skip a stop street this evening in your honour Lord Fartquar.

To everyone else, thanks for your time. I agree, he should have paid timeously; and it's probably a good lesson, and I'm glad Saturnz agrees (or kind of) that it's unreasonable to not accept a willingness to pay.

I would also say that it is a completely unprofessional of this homeowners association to let a debt build up like that; especially so that a phone call or a visit would have cleared it all up.

Not just directed at your friend, but all these people that know they must pay and do not. Don't take it personally.

As you know he has money, and that he has to ask to pay off his debt, I am not so sure you have the full story from your friend as to what the HOA have done to date to beg him to pay? I don't think HOAs are registered credit providers and he knows he has to pay. So now other people are paying for the services he is getting for free. Does that not sound like a squatter? Sympathy he will not get from me.

Pity he does not take a leaf out the book of his neighbor and pay on time.

 

[Mach III]

+1 to OP and his "friend". Nobody owes you a living. Why should they make special arrangements for him?

Put on your big boy pants and pay your bills like everyone else. I forgot simply doesn't cut it?

Quite a simple answer, because they would have R21,000 more in their funding (and I'm taking a calculative guess in assuming there are others like him). Humans are complex animals. Some don't read the post...

Bold bit: I understand you are frustrated that there are people that don't pay on time; but don't try dig more out of the story and assume it is me, lol. Take a chill pill. Maybe this will upset you: You will never have the opportunity to tell him to put on his big boy pants.

 

[shadow_man]

Quite a simple answer, because they would have R21,000 more in their funding (and I'm taking a calculative guess in assuming there are others like him). Humans are complex animals. Some don't read the post...

Bold bit: I understand you are frustrated that there are people that don't pay on time; but don't try dig more out of the story and assume it is me, lol. Take a chill pill. Maybe this will upset you: You will never have the opportunity to tell him to put on his big boy pants.

They've got money in their funding due to the items the sheriff will attach. Why should they go out of their way to change that - having already incurred all the costs at this point? There's absolutely no reason to be lenient at this point and no benefit.

 

[saturnz]

Please remind where you, and the OP/friend, stay? Never want you as part of the pool of contributors.

the starting rental in my building is R8000pm and the smallest of studio units go for at least R1.2m with a levy of around R1700

are you sure you can afford staying where I can even if you had the choice?

 

[Lord Farquart]

the starting rental in my building is R8000pm and the smallest of studio units go for at least R1.2m with a levy of around R1700

are you sure you can afford staying where I can even if you had the choice?

Starting rentals where I stay is R18k. You will not find a unit for under R2bar. Not sure what the levies are, but I think it is way less that what you pay.
The reason why prices are so high, and levies lower, where I stay is because of the prestige of staying in a community where people actually pay for the services they receive. No freeloaders to fund. Wonder what that mentality will do for your property prices, and levies?

Friggin dick swingers:wtf:

 

[Emjay]

The process to attach property is as follows:

1. Letter of demand to be issued providing some time to pay the money back (usually 7 or 14 days)
2. Debtor issue summons and serves it on the defaulter using a Sheriff. The respondent will have some time to lodge an intention to defend
3. Application for default judgement is then submitted to the court (if no intention to defend is provided)
4. Once the matter is heard in court and a judgement granted, then the applicant can attached property or an emoluments attachment order / garnishee order (attach part of his salary) or attach his property. If the applicant decides to attach his assets, he will receive a Writ of Attachment iirc.

There are ways to get around having assets attached however. If you want to know how, you can PM me. I charge a consulting fee however.

No one should ever just find the Sheriff on their property. He would have received multiple notices before that point is reached.

I have however heard of debt collectors threatening to send someone to take property. They just using people's ignorance of the law against them. It's just a scare tactic, as these debut collectors have to collect money under the worst conditions you can imagine.