STEP 1:   REVIEW THE DELINQUENCIES LIST, NOTE THE OWNERS WHO ARE TWO MONTHS IN ARREARS IN PAYMENTS.  OBVIOUSLY, IF YOU ARE JUST STARTING THIS PROCESS WITH NO PRIOR MONITORING ALL OWNERS IN DEFAULT STATUS MUST BE INCLUDED IN THE LIST.

STEP 2:  IF ANY ON THE LIST HAS BEEN REFERRED TO THE ASSOCIATION ATTORNEY, PLACE THEM ON HOLD PENDING FINAL REVIEW.

STEP 3:  ACCESS YOUR COUNTY CLERK'S RECORDS TO ASCERTAIN THE CURRENT STATUS OF THE OWNER'S MORTGAGE.  IF A LIS PENDENS HAS BEEN FILED BY THE LENDER, REMOVE THIS OWNER FROM THE ASSOCIATION ATTORNEY'S FILES.  REMEMBER THAT THE ASSESSMENTS ARE AGAINST THE "UNIT" AND NOT THE OWNER.  THEREFORE, THE DEBIT BALANCE FOR A PARTICULAR UNIT REMAINS REGARDLESS OF OWNERSHIP OF THE UNIT. SO, YOU WILL NOT "LOSE" THE ASSESSMENT EXCEPT TO THE EXTENT THAT THE STATUTE DOES NOT REQUIRE THE MORTGAGEE IN FORECLOSURE TO PAY AMOUNTS IN ARREARS FOR A GIVEN NUMBER OF MONTHS. AND THEN, YOU WILL WRITE OFF ONLY THE UNPAID AMOUNT AT CIRCUIT COURT SALE OR OTHER OWNERSHIP CHANGE.

STEP 4:  CONTACT THE UNIT OWNERS IN ARREARS AND/OR IN DEFAULT WHO DO NOT HAVE A PENDING MORTGAGE FORECLOSURE.  ARRANGE A PRIVATE MEETING BETWEEN ONE, OR MORE, BOARD MEMBERS (LESS THAN A QUORUM) TO OFFER THE WORKOUT PLAN PREVIOUSLY PROMULGATED, REVIEWED AND APPROVED BY THE BOARD.

STEP 5.  YOUR WORKOUT PLAN SHOULD INCLUDE AUTHORIZATION TO CONTACT THE LENDER SO THAT THE LENDER, THE ASSOCIATION AND THE PROPERTY OWNER CAN WORK TOGETHER TO PERFECT THE WORKOUT PLAN FOR MORTGAGE PAYMENTS AND ASSESSMENT PAYMENTS THAT COMPORT WITH THE OWNERS' ABILITY TO PAY.

TO FORMULATE THESE WORKOUT PLANS YOU NEED BOARD MEMBERS WHO ARE KNOWLEDGABLE IN MORTGAGE FINANCING AND HAVE ACCESS TO AMORTIZATION SCHEDULES. THESE BOARD MEMBERS SHOULD ALSO HAVE THE PROPER ATTITUDE IN CARING FOR THE OWNERS' PARTICULAR FINANCIAL PROBLEMS.  BOARD MEMBERS WHO CARRY BAGGAGE OR WHO CONSIDER THEMSELVES ABOVE THE REST (SEE EGO, CONTROL AND POWER) SHOULD NEVER BE INVOLVED IN THE WORKOUT PROCESS.

IT IS NOT ENOUGH TODAY, TO TURN OVER THESE ACCOUNTS TO THE ASSOCIATION ATTORNEY AND WAIT MONTHS FOR CASH INFUSION FROM THE MORTGAGEES' FORECLOSURES.  NO LENDER WANTS TO RUSH TO FORECLOSE WHEN THEY KNOW THEY WILL BE LIABLE FOR ASSOCIATION ASSESSMENTS.  UNLESS THE BOARD OF DIRECTORS TAKES A PRO-ACTIVE APPROACH TO RESOLUTION OF THE SHORTFALL IN FUNDING, THE FEW OWNERS WHO REMAIN WILL HAVE TO PICK UP THE TAB FOR THOSE WHO ARE UNABLE TO MAKE THEIR PAYMENTS.

THE BOARD SHOULD NOT AUTHORIZE SPENDING LEGAL FEES AND COSTS FOR FILING AGAINST THOSE WHO ARE IN ARREARS WHEN A LIS PENDENS HAS BEEN FILED BY THE MORTGAGEE.  ALWAYS CHECK THE STATUS OF THE FIRST MORTGAGE BEFORE TURNING OVER ACCOUNTS TO THE ASSOCIATION ATTORNEY.