How are Personal Judgments different from Lien Foreclosures?
Unlike lien foreclosure cases, in personal judgments, the parties (Association and homeowner) are required to attend a mandatory mediation. If the homeowner attends, a settlement can sometimes be reached. If a settlement cannot be reached, or if the homeowner does not participate in the mediation, a hearing will be scheduled. A personal judgment will be entered if the Association prevails at the hearing.
What is the process for a Personal Judgment?
We will send the homeowner a 30 day Demand Letter requesting payment in full. This letter is to satisfy the requirements of the Federal Fair Debt Collection Practices Act. If we have not received a response at the conclusion of the demand letter period, or payment in full from the homeowner, we will file a one count complaint in county court.
What rights does the association have in trying to collect on a Personal Judgment?
The Association has the right to proceed against the property of the homeowner through Writ of Execution, garnishment, or other judicial processes.
What steps does the association need to take to recover on a Personal Judgment?
There are several steps that need to be taken, a minimum of which include : a Writ of Execution delivered to the sheriff or marshal, the sheriff or marshal levying upon assets of the homeowner, and the sheriff or marshal selling as much personal property and real property as has been levied upon in order to satisfy the judgment.
Are there any limitations to the association's right to recover based on a Personal Judgment?
Yes, there are some limitations to this procedure, especially if the delinquent homeowner is considered “head of household,” which protects the homeowner’s bank accounts and wages.