Although we do have some delinquencies, our association is still able to pay bills… Do we need Association Partners yet?
It’s very important to note that FHA, Fannie Mae, and Freddie Mac require an association’s delinquency rate be less than 15% in order to provide a purchase money mortgage on a condominium unit. If your association is starting to accrue delinquent assessments, it is best to get a handle on things before approaching that threshold. Your association can use Association Partner’s advances to comply with these regulations while protecting your property values and ensuring their marketability.
What if our delinquency problem continues to grow?
If your number of delinquent assessments continues to increase, simply call Association Partners for a check to offset the non-payments and add the delinquencies to the process.
How much does Assocation Partners provide an association relative to total delinquent assessments?
Association Partners advances a portion of the delinquent assessment balance based on its analysis of the accounts submitted. Usually this portion represents several months of delinquencies.
How does Association Partners get paid?
Florida Statutes allow for interest accrual, late fees, and legal fees to be added to unpaid association assessments. If successful in its collection efforts, Association Partners is paid all interest, late fees, and collection costs, while the association receives 100% of the delinquent assessments collected.
Typically associations and management companies regard collection of delinquent assessments as an expensive and time-consuming necessity. Association Partners is able to succeed and manage its investment risk because it is set up to handle large-scale collection volume through its law firm. We also find that association prefer to stay out of the collection business as it can create conflicts between unit owners, associations, and their management companies.
Will the association be liable for any of the advances provided by Association Partners in the event Association Partners is unsuccessful collecting the debt from the unit owners?
No, Association Partners will not hold the association liable for any of the money funded should we not succeed in collecting the debt from the unit owners.
Is the association liable for any of Association Partners’ costs and expenses related to collecting on the delinquent assessments?
No. One of the greatest benefits of working with Association Partners is that the association will no longer have to retain collection attorneys or deal with the collection process directly. The legal costs of filing claims of lien and filing delinquent assessments will no longer be an expensive burden on the association once the debt collection has been turned over to Association Partners.
Our association is being managed by a third party professional management company. How does Association Partners fit in to this arrangement?
Association Partners only funds associations with reputable management in place. Association Partners does not provide association management. Our structure is designed to support the existing association management by providing capital and assuming the collection efforts of delinquent assessments. Association Partners coordinates the collection efforts with the management company.
What should we expect treatment of unit owners to be during the collection process?
We engage our attorneys to enforce the rights of the association. The rights are provided by the association’s declarations, by-laws, and Florida States. Florida Statutes dictate the necessary notices required to collect, lien, and foreclose against a delinquent unit. Assocation Partners requires that its attorneys be firm but respectful and professional in their efforts to collect delinquent accounts. Importantly, all communication with owners is done in writing to ensure the accuracy of communications. Also, no amounts owed are compromised without the association’s consent.
Do we have to assign all delinquent accounts to Association Partners?
No, you may select which accounts you do and do not assign.
Will Association Partners fund accounts that are already being handled by another attorney?
Yes, however, the association is responsible for the fees owed to that attorney. Association Partners will request the collection files from that previous attorney and will assume the collection efforts in place. Association Partners will also request an account of the association’s collection costs to date and wil include those costs in our legal fees. To the extent that Association Partners is successful in recouping the association’s prior collection expenses, a portion of those expenses will be reimbursed to the association to pay toward previous legal fee obligations.