Many people have never had to deal with a collection agency as they paid their bills on time and, unless they owned a business, they certainly never had to hire a collection agency.
Now, however, with residential foreclosures continuing, the volunteer homeowners that make up Community Association board of directors are finding themselves in the unenviable position of considering the option of hiring collection agencies and lawyers to recoup lost revenue.
Community Association board of directors are facing challenges, not just in Arizona, but nationwide in finding ways to meet their community’s financial needs. Some associations have increased monthly assessments to make up for the downfall while other associations have discussed closing amenities such as pools and clubhouses. Still others have taken the extreme but very necessary step and hired a collection agency that focuses exclusively on recouping funds owed to association.
Red Rock Financial Services, the nation’s leading provider of Community Association collection services, has seen a 500% increase in business in Arizona since 2010 to 2011. Many associations are seeking out collection companies like Red Rock Financial Services since the company requires no up-front charge to the association and has an excellent track record for collecting past due assessments.
Though many associations and collection agencies often get a bad rap, we need to remember that when a homeowner does not pay their share, it’s the paying homeowners that pick up the cost. As an association board member it is incumbent upon you to research and know your options for maintaining the financial stability of your community. Hiring a collection agency that knows the ins and outs of Community Associations is just one tool in your tool box.