Interest free "loans."

[Eric Blair]

For the last five-years, I have been pushing/asking the various BODs two things and never received any substantive answers.

1. People don't pay their dues; why doesn't/can't the frac go against the land?

2) Why won't/can't the frac amend the By-Laws to impose interest on back dues?

By allowing people to not pay, even though if/when the properly is sold/transferred, the back dues will have to be paid, in the interim, the frac is essentially making interest free loans to people who may be putting the $$ into an account and getting 6.25% interest.

What is the problem? A frac is a business, but from what I have seen, it's not being run as a business.

Enlighten me please, non-judgmentally if possible..

[gringal]

6 minutes ago, Eric Blair said:

For the last five-years, I have been pushing/asking the various BODs two things and never received any substantive answers.

1. People don't pay their dues; why doesn't/can't the frac go against the land?

2) Why won't/can't the frac amend the By-Laws to impose interest on back dues?

By allowing people to not pay, even though if/when the properly is sold/transferred, the back dues will have to be paid, in the interim, the frac is essentially making interest free loans to people who may be putting the $$ into an account and getting 6.25% interest.

What is the problem? A frac is a business, but from what I have seen, it's not being run as a business.

Enlighten me please, non-judgmentally if possible..

What do they do in the States when someone doesn't pay their fees in a similar community?  (Never lived in one, so I don't know?)  I'm guessing that a lien goes on the property, complete with penalties and interest.

[rvanparys]

Gringal: You are correct for HOAs NOB... Here it is a different story... We recently had a neighbor move and the realtor requested a letter from the managing committee that dues were paid up...This would be great question for Spencer McM....

[SunFan]

Our Frac withholds services and adds interest to outstanding maintenance fees. Of course the issue is when can you collect. Very often its only on the sale of the property (if the Frac is consulted) In the case of land it can be held for generations. With land as well withholding services is meaningless

Mexican courts limit collection of unpaid fees to a maximum of 2 years. Balance that with the legal cost of collection or liens. We've found the best method of handling morosos is attention to persistent collection contact.

SunFan

[HoneyBee]

You could probably just cut their water off. Now my understanding is that legally you can not do this in Mexico, so what Semata does (water company, spelling..) when water bills are not paid is simply to install a flow reducer disc. 

[Ferret]

I cannot imagine the frustration of those who do pay. It's really not fair. I can only tell you what happened in San Pancho to those (on the road going into the jungle past Calle Carolina) who neglected to pay for private road maintenance and private water. A HUGE sign at the entrance listed all the property owners who were not up to date in their payments. Apparently, the public shaming of the deadbeats did the trick. I do not know if that is even possible here.

[ComputerGuy]

Because litigation in this country is a lengthy and expensive proposition, and often the accused simply don't turn up, and there is then little legal recourse.

[Eric Blair]

3 hours ago, gringal said:

What do they do in the States when someone doesn't pay their fees in a similar community?  (Never lived in one, so I don't know?)  I'm guessing that a lien goes on the property, complete with penalties and interest.

 

[Eric Blair]

Yes, the property has a recorded  lien put on it, and, depending on the CC&Rs (Covenants, Conditions & Restrictions), the owner of the unit can be taken to court and often has to pay the other side's costs and reasonable attorney fees.

[Eric Blair]

1 hour ago, HoneyBee said:

You could probably just cut their water off. Now my understanding is that legally you can not do this in Mexico, so what Semata does (water company, spelling..) when water bills are not paid is simply to install a flow reducer disc. 

 

[Eric Blair]

There is a thin line between reducing water (or other services) and stopping them. Some frecs say they will reduce the flow to a "trickle." This is a term hard to define. I would say the frac must allow enough water for reasonable basic living. And what other "services" can be limited? Not trash collection, as that is usually a community dumpster or barrels, and then you get into a public health issue.

I say take one to court as an example.

[Eric Blair]

I live on a privada behind the main street.

When I moved in, the "horseshoe" driveway to my casa and 3 others was grass and dirt (mud when it rained), with two tire ruts on it.

There was also no street light. I asked at the office and a couple of days later was told since my street was "private," it was not the responsibility of the frac to maintain or light it.

So I did it the easy way.

I ordered three truck loads of gravel and had it dropped at three places on the "driveway." Then my gardener and my metal rake went to work spreading it over the driveway. Done deal. No flooding/mud since them.

Next, I got a 2"X2" metal tube; had a hole dug and had it cemented in. Went to a junk place (now closed) and found a nice street light. Put that on the post and hooked it to a timer on my exterior side wall, and done deal.

All of this in one week.

Sometimes it just doesn't pay to go through the sh*t with asking for something from a frac. The simplest thing can sometimes call for a committee to be formed to give a recommendation to the BOD and then, maybe, just maybe, something will be done.

[Natasha]

8 hours ago, Eric Blair said:

.....What is the problem? A frac is a business, but from what I have seen, it's not being run as a business......

 

Eric, I'm sorry, but you are wrong.  A fracc  has to abide by its Constitution and ByLaws that were set up when it was originated, and that is only to administer the properties contained within same.  It never was nor will be a "business". 

Others have already said what I would have added. Just another reason for people to REALLY LEARN about how this country works before they sink $$$ into becoming property owners, because Mexico is NOT like where you came from, regardless of where that might be!

 

[Islander]

8 hours ago, Eric Blair said:

I live on a privada behind the main street.

When I moved in, the "horseshoe" driveway to my casa and 3 others was grass and dirt (mud when it rained), with two tire ruts on it.

There was also no street light. I asked at the office and a couple of days later was told since my street was "private," it was not the responsibility of the frac to maintain or light it.

So I did it the easy way.

I ordered three truck loads of gravel and had it dropped at three places on the "driveway." Then my gardener and my metal rake went to work spreading it over the driveway. Done deal. No flooding/mud since them.

Next, I got a 2"X2" metal tube; had a hole dug and had it cemented in. Went to a junk place (now closed) and found a nice street light. Put that on the post and hooked it to a timer on my exterior side wall, and done deal.

All of this in one week.

Sometimes it just doesn't pay to go through the sh*t with asking for something from a frac. The simplest thing can sometimes call for a committee to be formed to give a recommendation to the BOD and then, maybe, just maybe, something will be done.

That is exactly how it works here. Do it yourself. You've learned well.

Morosos are a problem, especially when they are Mexican nationals. Suing will not bring a positive results for you, just frustration. Laws in Mexico are generally not followed...... quite successfully.

That is why it is important that people must be diligent before they buy a property.... which is not always easy.. especially when they assume that "things' work the same way as where  they came from. That is why so many "long time"  residents say do not buy but rent. Observe and learn first.

We accidentally found a document that 50% of residents did not pay duties in the area we were interested in  (10 years ago.)

That was a shocking.....so services were non-existent.....most people did exactly what you did …..took care of themselves.

 

.

[RVGRINGO]

We were very happy for our entire 13 years at Chapala, but we did follow one personal rule: Never buy in a fraccionamiento or condominio. Owning homes on normal streets in a normal part of town worked out very well, as we had Mexican neighbors and they kept the neighborhood customs just as they had been for a very long time. Trouble-makers did not last long.