Brown|Olcott is a leading provider of assessment collection legal services in Arizona. Services include collection demand letters, recording of notices of lien, foreclosure and judgment enforcement and collection.
If we don’t collect, we don’t eat. Our firm offers a EWYK (“Eat What You Kill”) contingent fee retainer agreement where PB&J collects assessments for no charge to the Association, except for foreclosures in certain cases. The best thing about this plan is that it perfectly aligns the Association’s desire to collect the assessments with the the interest of the PB&J in recovering attorneys fees and costs incurred on the Association’s behalf. We do not take a percentage of what is owed to the Association for our services.
On the EWYK Plan, the Association does not pay for collection services provided by PB&J. The management company or the association sends initial letters to the delinquent homeowner and in some cases records a lien against the property. When the management company or association has exhausted its efforts, the case is sent to PB&J. PB&J sends a preliminary demand letter. If the owner(s) do not pay, PB&J records a lien of Assessment against the delinquent owners’ property. If the owners still do not pay, PB&J will obtain a judgment against the owners and attempt to collect on the judgment through garnishment. PB&J will typically incur a minimum of $750 to prosecute a case to judgment. After obtaining the judgment, collecting the judgment typically costs a minimum of $500. The fees above are incurred on the Association’s behalf. They are collected from the delinquent owner as the Assessments are collected.
If foreclosure is necessary, PB&J will pursue foreclosure in the property at no charge to the Association if there is sufficient equity in the property (typically 10 to 20%). If there is not sufficient equity PB&J charges a flat fee of $1000. The lien foreclosure process results in charges that often exceed $3,000. The Association does not pay for any of these services, except the flat fee as discussed above. All collection fees and costs are charged to the delinquent owners.
This plan does not include collecting fines. The legislature removed the Association’s lien for fines in 2006; therefore we found that we could not prosecute and collect fines under the EWYK program. If you would like the firm to collect fines for the Association we would enter into a separate agreement prior to filing the lawsuit. (see Covenant Enforcement).