Legal Question in Credit and Debt Law in California
$10 late fees add up to property lien
My monthly dues (paid by auto banking) was short $3 a mo. The HOA charged $10/mo late fees. Each month they received my monthly dues but subtracted $10 for a late fee. Even after I fixed the amount I paid for monthly dues, each month they charged me a late fee because of the unpaid late fees. Is this good accounting practice?
I called the HOA and they said they would look into it but never called back. They have now filed a lien. I showed good faith in paying each month--do I have any recourse?
Can they charge over $1000 in fees and court costs? ($775 just to file a lien (they only filled in 2 blanks on a form for crying out loud!)
I have 90 days before they put my house up for sale. The ''late'' payments were a result of mistake. What I owe without late fees and charges is $120. Isn't there some limit on the amount or percent of late charges they can legally charge? They claim I now owe them $1,475. Ouch.
Any help would be greatly appreciated.
Wretched in Riverside
2 Answers from Attorneys
Re: $10 late fees add up to property lien
All fees charged must be justified and proper by statute and your C.C. & R's. Please contact my office at 714 363 0220 to set up an appointment. I would like to review your written documentation including any letters, notices, and lawsuits. We handle cases throughout California. We can review your documentation by fax and speak with you by phone.
Re: $10 late fees add up to property lien
Pay the $1,475 and mark your check "under protest" to prevent foreclosure, then sue in small claims court to try and get it back. This is only my best guess, I have not looked up the law applicable to HOAs, and you should consult a lawyer in person as your house is at stake.
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