Condo Media - July 2018 - 35

claims" means just that -- recovery is
capped at $6,000 in Maine, $7,000 in
Massachusetts and $10,000 in New
Hampshire. If the delinquency exceeds
those limits, recovery prospects would
probably be better in a foreclosure, and
reasonably assured if the association has
a priority lien.
"It takes a lot of work for me to go
to small claims court, get a judgment,
and then try to collect on it," Scott Wolf,
CMCA, AMS, PCAM, managing partner
at Brigs, LLC, AAMC, says. "There's no
reason to go that route when we have a
super lien that will cover the delinquent
payments and attorneys' fees."
In Maine, which doesn't have a superlien, the small claims option is more
appealing to associations, McGlauflin
says, for two reasons: They don't have
to be represented by an attorney (an
association board member can handle
the relatively informal process); and "the
likelihood of a quick judgment is high."
But the prospects for collecting are less
certain, he notes, depending entirely on
whether the delinquent owner has the
ability to pay.
Daddario sees several disadvantages to the small claims route in New
Hampshire, primary among them:
Corporations can't represent themselves in small claims court, so this
option wouldn't reduce legal expenses
for New Hampshire associations, as it
could for those in Maine. The cap on
recovery is another obvious disincentive, he says, but the biggest drawback, he believes, is the inclination of
judges to seek an equitable solution
that will balance the interests of the
parties - for example, by awarding associations less, and possibly considerably less, than they are owed, to ease
the burden on the delinquent owner.
Judges presiding over foreclosures
"will deal with the statute," Daddario
notes. "The results may be harsh for
the owner, but the judges are still going to follow the law. Condominiums
are statutory creatures," he adds. "If
you have to go to court, it's better
to go to a court that is going to be
guided by the statute."

delinquent payments. Condo owners
are personally liable for their debt,
Daddario notes, and it is entirely possible that the association would win a
judgment requiring them to pay. "But
a judgment is just a piece of paper," he
notes. If the owner has no money and
no assets, the association won't be able
to collect, "and if you can't collect, what
have you accomplished?"
"OUTING" DELINQUENT OWNERS
One strategy industry executives emphatically and pretty much universally
discourage is 'shaming' delinquent owners by publishing their names - in board
minutes, newsletters or other venues
accessible to association residents. The
primary argument in favor is that owners are entitled to financial information
about their community and have a right
to know which owners aren't paying
their share of association expenses. But
there are many more arguments against
sharing this information, primary among
them - privacy and the legal liability
related to it.

The Fair Credit Reporting Act (FCRA)
prohibits disclosure of personal debts
to third parties. Whether the FCRA applies to condominiums is an unsettled
legal question. But if it does, association
attorneys agree, publishing the names of
delinquent owners would violate the law.
Even if the statute doesn't apply,
owners might still sue the association for
violating their privacy. "Disclosure would
create liability risks for the association,"
Moriarty cautions.
Legal concerns aside, McGlauflin believes, boards should "be sensitive to the
privacy concerns of owners," and sensitive as well to the financial problems they
may have encountered. Wolf agrees.
"I am 100 percent opposed to shaming," he says. "I don't see the value in it.
Most people who become delinquent
have legitimate economic reasons for
[falling behind]. It doesn't benefit anyone to identify and ridicule them. And
it undermines the whole concept of a
community association - which is supposed to be about people living and
working together."

■ Sue the owner personally if the
foreclosure proceeds don't cover the
July 2018 CONDOMEDIA

35



Condo Media - July 2018

Table of Contents for the Digital Edition of Condo Media - July 2018

Contents
Condo Media - July 2018 - Cover1
Condo Media - July 2018 - Cover2
Condo Media - July 2018 - Contents
Condo Media - July 2018 - 2
Condo Media - July 2018 - 3
Condo Media - July 2018 - 4
Condo Media - July 2018 - 5
Condo Media - July 2018 - 6
Condo Media - July 2018 - 7
Condo Media - July 2018 - 8
Condo Media - July 2018 - 9
Condo Media - July 2018 - 10
Condo Media - July 2018 - 11
Condo Media - July 2018 - 12
Condo Media - July 2018 - 13
Condo Media - July 2018 - 14
Condo Media - July 2018 - 15
Condo Media - July 2018 - 16
Condo Media - July 2018 - 17
Condo Media - July 2018 - 18
Condo Media - July 2018 - 19
Condo Media - July 2018 - 20
Condo Media - July 2018 - 21
Condo Media - July 2018 - 22
Condo Media - July 2018 - 23
Condo Media - July 2018 - 24
Condo Media - July 2018 - 25
Condo Media - July 2018 - 26
Condo Media - July 2018 - 27
Condo Media - July 2018 - 28
Condo Media - July 2018 - 29
Condo Media - July 2018 - 30
Condo Media - July 2018 - 31
Condo Media - July 2018 - 32
Condo Media - July 2018 - 33
Condo Media - July 2018 - 34
Condo Media - July 2018 - 35
Condo Media - July 2018 - 36
Condo Media - July 2018 - 37
Condo Media - July 2018 - 38
Condo Media - July 2018 - 39
Condo Media - July 2018 - 40
Condo Media - July 2018 - 41
Condo Media - July 2018 - 42
Condo Media - July 2018 - 43
Condo Media - July 2018 - 44
Condo Media - July 2018 - 45
Condo Media - July 2018 - 46
Condo Media - July 2018 - 47
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Condo Media - July 2018 - 49
Condo Media - July 2018 - 50
Condo Media - July 2018 - 51
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Condo Media - July 2018 - 53
Condo Media - July 2018 - 54
Condo Media - July 2018 - 55
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Condo Media - July 2018 - 72
Condo Media - July 2018 - Cover3
Condo Media - July 2018 - Cover4
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