Post by Admin on Dec 19, 2015 19:49:58 GMT -7
Past Due Assessments top $270,000.00 in December 2015
[li]A few, very few landowners are on payment plans. In 2007 the criteria for payment plans was simple. A past due landowner was contacted by the Treasurer and asked if they would like to get on a payment plan. The landowner was allowed to set their own terms for monthly payments; whatever worked for them was accepted. As a bonus the GLA Board promised to freeze the interest as long as the landowner paid every month or quarter. By 2010 only 3 landowners were on payment plans and the GLA Board Treasurer forgave them almost $30,000.00 in interest payments.
[/li]Past due assessments, penalties and interest now exceed $270,000.00 as of December 2015.
That figure is probably low because for several years interest was not properly calculated per the Covenants.
That figure is probably low because for several years interest was not properly calculated per the Covenants.
- In 2007 unpaid assessments totaled about $60,000.00.
- By 2010 that figure almost tripled to $160,000.00
- At the end of 2015 almost 20% of landowners are NOT paying assessments and they collectively owe the community of Glastonbury over $270,000.00. The percentage of non-payers is increasing and the amounts owed have skyrocketed.
[li]A few, very few landowners are on payment plans. In 2007 the criteria for payment plans was simple. A past due landowner was contacted by the Treasurer and asked if they would like to get on a payment plan. The landowner was allowed to set their own terms for monthly payments; whatever worked for them was accepted. As a bonus the GLA Board promised to freeze the interest as long as the landowner paid every month or quarter. By 2010 only 3 landowners were on payment plans and the GLA Board Treasurer forgave them almost $30,000.00 in interest payments.
[li]Think about this in terms of your house mortgage. You miss a few payments. The bank calls and asks if you would like to set up a payment plan. They ask what amount would you be comfortable in paying each month? You think...well I was paying $1,000.00 a month and 6% interest for a yearly total of $12,720.00. I have 20 years left on my 30 year mortgage. So you boldly ask "how about I pay you $250.00 a month?". The banks says "fine" and adds that for being so cooperative your interest will now be frozen. So you can now take 80 years to pay off your mortgage and not pay a penny in extra interest!
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[li]The GLA Board developed a Collections policy in 2012 which followed the actions allowed by the Covenants; liens, collections and foreclosure.[/li]
[li]Liens were traditionally placed upon debtor's property and that practice continues today. All a lien does is require that the owner of the property get the lien released before they are allowed to sell the property.[/li]
[li]The effect has been three fold. One, people who are not planning on moving do not need to worry about a lien. They can continue to not pay assessments and enjoy all the benefits of road maintenance and plowing for no charge. Some landowners have followed this behavior for 20 years!
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[li]Two, people who have fallen on hard times and cannot afford to pay their assessments, simply do not. Eventually their property collects many liens and ends up at a sheriff's sale. At that point the GLA Board is lucky to get anything.[/li]
[li]The third scenario is what people often do when they have a lien and want to sell their property. In 2011 several landowners approached the GLA Board with sad stories, some of which had merit. They wanted their liens released and offered to pay varying amounts if the GLA Board would act kindly. Some offered to pay only the principle, others the principle and maybe 5% interest but no penalties. Everyone wanted to get a break. No one talked about how dues paying landowners were currently responsible for an 8.75%, 15 year road loan. No one seemed to realize that it did not matter if the delinquent landowner was broke. In reality the past due landowner was NOT paying the past due assessment. The money would actually come from the buyer, the person who had money and wanted the land. The delinquent landowner would simply end up with a lower price and less money after the sale. No one saw it that way either. Instead the GLA Board bent over backwards and gave away the store. They waived interest for some and penalties and interest for others. Then they patted each other on the back and praised each others "compassion". "I am my brother's keeper" was an oft repeated phrase at the Director's table. The GLA Board seemed to be on a mission to do good in the world. Many director's did not understand that their actions rewarded bad behavior by debtors and penalized good behavior by dues paying members. I believe that most Directors could not see beyond themselves and their personal mission. How many times since have we seen the same behavior?[/li]
[li]Glastonbury Financial Crisis Link - takes you to a landowner web site article that details the unpaid assessment problem in 2011; almost 5 years ago. The article was shared with the GLA Board in 2011 and sadly it had no effect. The issue was raised again at the 2011 Annual meeting and caused a heated debate with one candidate waving around a bundle of 45 one hundred dollar bills to graphically demonstrate what the GLA Board had given to debtors. He closely lost his bid for a seat at the director's table.
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[li]To date the only enforcement action taken by the GLA Board against debtors is to place a lien on their property. No one has ever been turned over to a collection agency nor been foreclosed upon. The GLA Board has forgiven almost $45,000.00 by freezing interest for landowners on payment plans and forgiving interest and penalties when landowners asked to have their liens released. Now the GLA Board wants to reduce interest on past due amounts from 18% to around 6% via a Covenant change. It appears that they are still on a mission.[/li][li]What do you think? Please post your thoughts and comments below.
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