This initial letter serves several purposes. First, it is an initial warning to the home owner that the Association has the right to lien and foreclose on their property if they will not pay their Association Dues (and associated fees). Second, the letter serves as notification to the home owner that their account has been passed into ADAC's collection services and that all payments from that time until their account is current (having paid all Dues, Association fees, and Collection fees) must be directed to ADAC. This letter also serves as (and meets all the requirements of) the Fair Debt Collection Practices Act (FDCPA) letter, which gived the home owner 30 days to arrange payment before the Association can pursue a lien and possible foreclosure. The format of this letter is personalized for each State and Association.

In many States, the laws read that the Association automatically has a lien on the properties within the Community.  However, to insure protection ADAC does file a lien within the County where your Association is located. This lien is picked up by credit agencies, banking institutions, can affect re-financing, etc.  When a home owner is elevated to this level the ADAC charge also includes the discharge of lien fees should the homeowner pay off the account during this stage.

ADAC always sends the home owner a final warning before beginning any actual foreclosure proceedings.  Home owners elevated to this stage are contacted in every viable form to insure proper notification.  Home owners incur significant legal, publication, and processing fees during this stage and each state has its own particular steps to achieve foreclosure.  ADAC specializes in non-judicial foreclosure, but also will seek judicial foreclosures where necessary, co-operating in Attorney assistance and Attorney support as contracted.