The Crossing at Ridgewood Village Delinquency Policy

When reviewing this policy keep in mind that under M.G.L. c. 183A the association is afforded a six month priority over a unit’s first mortgagee for common charges and collection costs. And common charges owed outside the six months preceding the filing of a complaint are behind the first mortgagee, which likely means they are uncollectible through a sale. The association should make every effort to not allow six months of delinquency pass without the filing of a complaint. This would ensure that the common charges stay ahead of the first mortgagee and allow the charges to be recovered through the sale of the unit.

Collection costs, including legal fees, are part of the priority over the first mortgagee. In this respect they should be seen as an out of pocket expense that will be recovered and ultimately an expense that will generate income for the association.

Time Line for Notification:

Each monthly invoice is considered a separate incident until the residents file is sent to the attorney.

• On the 11^th day of the month a late fee of $10.00 is assessed.  And a reminder call will be made.
• Between the 20^th and the 25^th day of the month a general written notice will be sent.
• On the 30^th day a $25.00 fine is imposed.  This fine will continue to accrue on the thirtieth (30^th) of every month until the invoice is paid.

Access and use to all common areas will be eliminated at this time.

• On the 42^nd day a formal letter will be sent from the Trust.
• By the 62^nd day the resident file will be given to the attorney for further action

This timeline of action is derived by the best practices outlined below:

• Units that have two unpaid months of common charges due and unpaid should receive a notice of delinquency from the association. The association should seek to work out payment plans in order to avoid the costs of forwarding files to legal counsel. Any proposed payment plans from unit owners should be made in writing, and codified in a return letter to the unit owner.

• Units that have three unpaid months of common charges do and unpaid with no repayment plan should be sent to counsel for collection proceedings under M.G.L. c. 183 A. this ensures that a complaint would be timely filed in the sixth month of delinquency.

• Once a file is received by counsel proposed payment plans should be reviewed by counsel and the association.

• If a payment plan is accepted the association should adhere strictly to its terms and immediately refer the matter back to counsel if the terms have not been met.

• Absent a written repayment plan or payment in full, the association should continue to pursue collection in accordance with M.G.L. c. 183A.

• Upon receiving Judgment the association should review its options under the “rolling lien” theory recognized by Massachusetts law.

• In most cases the association should elect to schedule a sale of the unit for unpaid fees. It is not likely that we would need to sell the unit but this step puts significant pressure on the first mortgagee who more often than not will pay any outstanding fees and costs.