This is a frequent call I receive. Here’s my advice:
If you were ever late with just one payment, you set into a motion a problem that just snowballs. It may be possible you mailed your check on time but it was not delivered on time. The association is still entitled to late fees, interest and attorneys’ fees whenever a payment is late. Once the account is late, the account is sent to the attorney and any payments you mail are rerouted to the attorney, which is the reason for the delay in posting payments.
By state law all payments you send to the association are applied to non-assessment charges first and assessments last. This means unless you pay the amount demanded in full you will always be late and subject to foreclosure. Contacting the attorney only adds more legal fees because by state law the association is entitled to all of their attorneys’ fees even if a case is never filed.
You need to resolve this now because the association is most likely preparing to foreclose on your property.
Unless you can prove you were never late starting with the first time your ledger is showing a late payment, which is usually not possible without a tracking number on the mail, you will need to request a payment plan in writing to the attorney. Payment plans are generally approved for 6 to 12 month repayments. The payment plans can be expensive as well because the attorneys charge to set up the plan and charge to process the checks and monitor your account to make sure you continue to pay.
If the payment plan doesn’t work out for you or the association doesn’t approve it, consider filing bankruptcy. If you owe more on your home than it is worth you could lien strip the debt. If not, you could file a Chapter 13 plan and put the debt into a 5-year repayment plan. Filing a Chapter 7 without lien stripping will relieve you of the debt, but the lien remains and the association could still foreclose. You also have to pay any assessments that come due after you file bankruptcy.
If you are in this situation — hire a lawyer! YOU ARE AT RISK OF LOSING YOUR HOME!
If the association has a third party debt collector, this is definitely a complicated matter that requires hiring a lawyer.