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Traditional Collection Methods Versus the HOA Business Model

Traditional Collection Methods Versus the HOA Business Model

  • Posted: Nov 04, 2021
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Traditional Collection Methods Versus the HOA Business Model

The Collections Conundrum

Human interaction is the foundation of a good business, that’s a pretty standard assessment. But that interaction gets complicated in a business like a community association. It can be a very muddy concept–homeowners buy a house that comes with a way to try to guarantee property values for a marginal fee, but it isn’t always clear that this agreement makes them part of a larger business model. This complicated relationship can make difficult business practices, like debt collection, all the more painful.

Fabio Ades, owner of PMI Top Florida Properties, who manages Serenity Place IV Condominium, found Axela’s post-foreclosure process to be the key to uncomplicating this unique business relationship, and softening the blow of debt collection.

“Implementing Axela was seamless for my management team because it connected with our existing accounting system. The way Axela’s systems are set up just made things easier for us,” says Ades. “But more importantly, Axela helps our customers. Consistent collections keep up the health of the community and protect members’ assets.”

Traditional Collections in an Untraditional Business Model

Collections are traditionally a process regarded as heartless. It calls to mind thoughts of unending phone calls from aggressive debt collectors armed with threats of asset repossession and loss of livelihood. It creates a general feeling of uneasiness in just about everyone. Unlike other business collections processes, that lack of ease is typically felt on both sides of the table when it comes to collections in a community association.

“It’s hard for people to remember that it’s not Fabio calling to collect–it’s not the Community Association Manager. It’s not the Board Treasurer who’s the bad guy, we’re not the bad guys,” Ades said.

Unfortunately, that’s what homeowners see. They see the person they’ve made friends with, they see their neighbor, the grill master who lives two doors down, or the dog walker on the third floor. They’re being asked by friendly faces for money they’re struggling to make, and those friends and neighbors are just as unhappy to be doing the asking.

But that’s the job. And that job is made a lot harder with the knowledge that there isn’t a lot of wiggle room when it comes to acting on delinquency.

“Management companies frequently have regulations that make it hard to help homeowners,” Ades lamented.

Community associations have little to no flexibility when it comes time to collect on past due payments from a homeowner. This is often a four-step process:

  1. Send an initial courtesy letter to the owner about the unpaid fees, alerting the homeowner of penalty fines if they remain unpaid
  2. Send a second courtesy letter, again warning of penalty fines for unpaid fees
  3. Send a final courtesy letter requesting payment and warning of pending legal action
  4. Refer the case to an attorney to begin pursuing legal action, at cost to the association

When a lawyer is on a collections case and the bank forecloses, it’s game over. If the property is in a super lien state then the association will recover a pittance of what is owed and the attorney will advise the association to “write off” the balance. Also, the attorney will advise the association that they owe him/her for legal services.

All of this happens over the course of 60 to 90 days. For a homeowner struggling to make payments, that time flies by and often isn’t enough to get current on the account.

 

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The Mystery of the Missing Minutes: How Community Association Document Retention Protects Against Liability

The Mystery of the Missing Minutes: How Community Association Document Retention Protects Against Liability

  • Posted: Sep 23, 2021
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The Mystery of the Missing Minutes: How Community Association Document Retention Protects Against Liability

Who Voted for What and When…Where Did the Minutes go?

Here is a cautionary tale: Your board of directors voted for a big capital improvement project along with a special assessment. Like a well-governed association, they memorialized the motion and the vote from the meeting in the minutes. With that project, the association needs to make a special assessment because the reserves were not funded well. A few owners are not happy about the special assessment and retained a lawyer to strike it down.

Years go by before it makes it to court and in discovery, the plaintiffs request the minutes as proof that the board did their fiduciary duty when making the decision. Except, after all this time has passed, the association has changed management companies and the minutes are nowhere to be found. Nobody remembers anything: some old board members have moved on; the management companies did not keep your minutes or did not turn them over to the new management company.

Now all the association can do is pay the attorneys (a big waste of money) and start all over again. This is how, without a community association document retention policy in place, a simple capital improvement project which may have cost $50,000.00 is overshadowed by a massive and unnecessary loss of resources for your community association.

HOA Document Retention

Safeguarding Your Documents Protects You from Liability

Boards may change over time, but the safekeeping of all records does not. When a new board is elected, it is the obligation of the outgoing board to return or hand over all community records — most important of all the minutes of all their meetings. If a new management company is hired, they must obtain all the documentation and records from the previous management company. Unfortunately, it’s often a futile task, and you might as well be looking for your documents in the Bermuda Triangle.

Most state laws require that community associations keep records for five to seven years (depending on the state). If there are no statutes regarding document retention, common sense tells you that they should be retained and accessible.

A simple test to know if your community is protected

If you are a board member or an owner, ask your management company to produce records of minutes from a meeting five years ago. Ask them for the budgets for the last three years. This should not be a difficult request. This is a simple test that can be conducted by diligent board members to ensure your record-keeping obligations are being met. If they cannot find the last three years’ budgets, you have a very big problem.

Community associations are required to retain a large number of records, many more than any individual director is accustomed to in their personal lives. So naturally, the task falls on the management company. Failure can have various negative effects, particularly, as in the example above, when the association gets sued.

Improper Documentation can Lead to an Inability to Collect on Delinquencies

Here’s another example: What if a board has decided to put Mister Delinquent into collections for non-payment of assessments for the past three years (don’t be surprised, some boards will wait before moving on an issue like this). Your collection agency asks for the budgets and minutes of budget meetings to verify the debt and they are nowhere to be found. I think you can guess how this pans out. Without the budget minutes and other documents required to put a budget into play, from a legal point of view, there is no debt to collect.

Condo Association Document Retention

In the midst of chaos, You need a source of truth

Let’s face the facts and understand that community associations are volatile environments and quite dynamic. Boards of Directors change, emotions run high, management companies are dismissed frequently, as are attorneys, vendors, and whoever else gets an opportunity to work for an association. Sometimes by accident (and sometimes by design) disgruntled board members, dismissed employees (managers), or untrained office staff may feel that the round file (garbage can) is for everything that is over a year old.

The minutes are the history of all board actions and decisions and losing them is like losing your medical records…It’s unhealthy for your community’s future. Yet many associations continue to work the same way they did in 1961 and everything is committed to paper. In essence, your so-called paper trail has fallen into a deep dark abyss never to be found again.

These days you can have virtual meetings so why not digitize the minutes and keep them safe? It costs very little to set up a cloud drive for the community to store valuable documents. Association servers or cloud-based document retention services should be filled with documents and files to protect the community from liability. Time marches on and technology continues to advance: don’t let your association be left behind.

Community Association Document Retention

The solution? A Community Association Document Retention Policy

So now that a potential problem has been identified, what are the possible solutions?  First and foremost, as mentioned above, the board of directors must establish a record-keeping policy and protocol which involves voting on it and memorializing this in the minutes. Don’t lose those minutes and approve them at the next meeting. Said policy should identify all the records that an association must keep and for how long.

Figuring where to start when writing your community association document retention policy should be easy since most states, already require retention of certain documents. In addition to the documents required by the state, be sure to include any documents that support and protect the interests of the community association’s business. Because, make no mistake, helping to prevent future costly lawsuits and legal defense funds is certainly in the community’s best interest.

Community Association document retention isn’t just for minutes. Whether your state requires it or not, it behooves your board to hold on to certain items that may be needed in a future lawsuit. Those include:

  • governing documents
  • insurance policies
  • vendor contracts
  • accounting ledgers
  • audit reports
  • reserve/engineering studies
  • warranties
  • proof of meeting notices
  • all meeting minutes (public and private)
  • collection policies & payment plan agreements
  • proof of mailings
  • any other processes that can be documented or may be disputed in the future
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Lock it Down… For the Future

Sloppy or lackadaisical record keeping can have disastrous effects on community associations. It is the responsibility of BOTH the boards of directors and the management companies to ensure that the community is protected from liability. The best way to do that is to lock down everything and store your important documents in the cloud.

If you have been planning to move your records to the cloud “someday” consider today that day. This is a project worth getting to work on right away because bad things can happen in the wink of an eye. Your first, and sometimes only defense against problems in the future, is documenting everything today.

If you want to learn more about community association governance please contact us for a free no obligation collections analysis and we will be glad to speak to you about all other matters that you may have questions about.

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Why Is Your Community Association Still Using a Lawyer for HOA Collections?

Why Is Your Community Association Still Using a Lawyer for HOA Collections?

  • Posted: Sep 21, 2021
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Why Is Your Community Association Still Using a Lawyer for HOA Collections?

Axela Technologies / Bob Gourley

Condos and HOAs Still Paying Outrageous Legal Fees for Collections

If your condominium or homeowners’ association is facing a purely legal issue – a lawsuit, construction defect, governing documents updates, and such, having an experienced and qualified community association attorney is mandatory. But should you contact your lawyer for HOA collections?

Community associations are creatures of statute and attorneys are important to maintain proper governance. These experienced legal professionals deliver the expertise and legal finesse the community association will need to stay compliant with state statutes and their own bylaws. This avoids missteps and potential future lawsuits brought on by inappropriate actions.

Since attorney fees are generally significant, condominium associations and HOA boards should be judicious when engaging an attorney as it will cost the association a good bit of money. With that in mind, there are times when the cost and risk of using an attorney are wisely avoided.

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Don’t Just Skip Ahead to Foreclosure

When home and unit owners in condominiums and HOAs fall behind in their common fees and assessments, it can feel like very few options are available to collect on those missed payments. Communities generally turn to the usual suspects — an endless string of reminders and warning letters requesting payment, or referring the delinquent owner to a lawyer for HOA collections. But those are actually steps 1 and 3 (the warning and the foreclosure) of the full collections process. Step 2 is your opportunity to recover those debts without expending any additional energy or paying outrageous fees to an attorney on retainer: a collections solution, rather than legal enforcement.

A community association foreclosure should always be a last resort. It’s like fishing with a shotgun–sometimes it’ll get the job done, but it’s more costly, less efficient, and you don’t gain as much as you could with other collection methods. Wise associations seek a non-attorney remedy.

When you retain an attorney for collections, the end game of the attorney is foreclosure on the property. This isn’t collections, but rather “a security interest enforcement” action. In the Supreme Court case, Obduskey v. McCarthy & Holthus LLP, 139 S. Ct. 1029 (2019), the court ruled that in states that use non-judicial foreclosures, law firms are subject only to the requirements and prohibitions of one narrow section (1692f(6)) of the FDCPA.  In essence, the United States Supreme Court is advising community associations that attorneys foreclosing in non-judicial states are by no means a “collections entity.” More to the point, it’s expensive and can take years before the association sees a dime of what they’re owed, leaving communities in a lurch for funds.

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So you Foreclosed… Now What?

Let’s say you followed the legal process to its desired conclusion of foreclosure. The previous owner (as in many cases) becomes overwhelmed with the costs of legal fees and they lose their property.

The best result for a community association lien foreclosure on a property is getting an encumbered title. That means that the association takes the title, but the title is encumbered by the mortgage, which is still attached. The first mortgage can still be foreclosed upon and it will be eventually, at which time the community will lose access to that title.

…But what happens after the community takes the title? How do you monetize an association lien/foreclosure? Perhaps an investor will pick it up and now your community becomes a plaything of real estate investors. Or perhaps the association will rehabilitate the property and rent it out to recover delinquent fees and costs. Does the community association really want to get into the business of managing rentals? That’s a lot of work and liability to take on!

It’s a shame on many levels.

Legal Fees 3

The Burden of Legal Fees on Homeowners

Take a look at this example of fees charged to one delinquent homeowner:

attny fees

This is a real-world example. A condominium unit owner had fallen behind in their common fees in the amount of $1,830.00. The Board of Directors referred the matter to their attorney. As you can see, the legal fees mounted quickly, and by the time of this invoice, the association has already laid out $17,193.68 in legal fees due to the attorney. Even worse, these fees were going to be assessed to the delinquent unit owner by the association.

The total owed by the homeowner was now nearly 10 times what was owed to the association! This is completely unfair and unnecessary.

The final insult to the community is that this case is yet to be concluded and the delinquent unit owner may never be able to afford to pay for this issue, leaving the owner homeless, and the community on the hook for the legal fees. It does not have to be this way.

Legal Fees 4

The Argument for Ethical Collections

We wish we could say that is the only example of homeowner debt spiraling out of control, but it isn’t. In the community association management industry, it’s heartbreakingly common to hear of homeowners who ultimately lose their homes through foreclosure. Enormous legal fees amassed during long, drawn-out legal processes take away any chance of paying back what they owe. It can ruin lives and is why we at Axela always insist that foreclosure be viewed as a last resort.

A specialized collections process is a far simpler, cost-effective, and humane solution to attempt before considering going through a lawyer for HOA collections. From coast to coast, we hear similar stories where a collection process would have allowed the owner to remain in their home, and just as important, the association wouldn’t have had to pay an attorney only to have to “write off” the loss when no collection event occurred.

Some associations engage collection agencies that offer to buy the association’s debt, but those are also ripe for abuse of the homeowners. Collection agencies that perform at no cost or risk to the association like Axela Technologies are a preferred collection remedy because they are an effective solution that follows the collection regulations set forth in the community’s governing documents and costs the association nothing. Collection fees, which are quite modest compared to attorney fees, are passed through to the delinquent homeowner. This benefits the association as well as the delinquent homeowner because of the huge discrepancy between collection fees and legal fees charged by an attorney.

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Choose a Merit-Based Collections Agency

Axela Technologies offers a far better solution. Instead of burying the homeowner in tremendous legal fees, we work with them to figure out how best to pay off their indebtedness to their association and return them to good-paying status. Instead of charging by the hour for our work, as attorneys do, our fees are set at the onset (hard set fees with no hidden or junk fees) and passed through to the delinquent homeowner. We work diligently to explain the benefit of keeping the equity in their home and provide a solution to their problem. There is no need to put the association or the homeowner at risk of losing additional money.

In fact, since the Axela Technologies collection solution is 100% merit-based, our interests are perfectly aligned with the association. If we don’t collect from the homeowner, we don’t get paid. We collect 100% of what is owed to the association 19 out of 20 times without the need for the association to move the matter to an attorney for foreclosure.

Even when the matter does go to foreclosure, we stand with the association until the conclusion, which often yields a successful collection event for the association. If a lender forecloses on a unit we will not advise the association to write off the loss. We will follow the ownership of that unit and if the bank sells it with a surplus we will petition the court for the benefit of the association to recover that surplus. We don’t like write-offs and neither should you.

If your association gets sued, or if you need to change the language in your bylaws, you should absolutely be consulting with or employing an attorney. But, if your association is experiencing delinquency at any level, don’t get a lawyer for HOA collections. Skip the high legal fees and partner with Axela Technologies. Get in touch today and learn how Axela Technologies can help. Axela Technologies handles all collections on a merit-based system. Get your free collections analysis today.

 

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Homesteading and the Homestead Exemption: 3 Things to Know for Your HOA by Mitch Drimmer

Homesteading and the Homestead Exemption: 3 Things to Know for Your HOA by Mitch Drimmer

  • Posted: Sep 08, 2021
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‘Homestead’ (or perhaps ‘homesteading’) is a word you’ve probably heard, but aren’t clear on what it is or means. So when we talk about homestead exemptions for housing, there can be some confusion. A “homestead” is defined as a house, or more specifically a farmhouse, and “homesteading” is defined as, “a lifestyle of self-sufficiency.” Homestead law allows an individual to register a portion of their primary residence (and only their primary residence) as “homestead” to reduce the taxes paid on it. The original goal was to preserve the family farm, home, or other assets in the face of severe economic conditions. See how it all connects?

Homestead exemptions exclude a portion of a home’s value from taxation

Homestead Law Today

Homestead exemptions exclude a portion of a home’s value from taxation, so they lower the taxes. For example, if a home is appraised at $100,000, and the owner qualifies for a $25,000 exemption (this is the amount mandated for school districts), they will pay school taxes on the home as if it was worth only $75,000. It also makes that portion of the individual’s estate off-limits to most creditors and protects that value from financial situations that arise due to the death of the homeowner’s spouse (to guarantee that the surviving spouse has shelter).

Now the real disconnect between the homestead exemption and homestead/homesteading is that the only requirement needed to get a homestead exemption is that the home is the owner’s primary residence–no farming necessary.

A homeowner doesn't have to have a farm to take advantage of the Homestead law

What Does This Mean For HOA Collections?

Homestead, homestead exemptions, and homesteading are all a little confusing. So at some point, you start to wonder how the exemption might impact your community funds or a future collections process. Here’s what you should know:

HOAs and Condo Associations Can Still Collect

Luckily, there are some exceptions to the homestead exemption: taxing authorities (state and federal), mortgage lenders, and the community association where the property is located (that’s you!) all have the ability to foreclose and collect if payments are missed.

So if one of your homeowners is behind on their assessment fees and all efforts to collect the debt have failed and the next step for your community is to foreclose, even if they have a homestead exemption, your community association is legally one of the only entities able to go to foreclosure.

Homesteading Not Required

Even though “homestead,” “homestead exemption,” and “homesteading” all call back to farming in some way, the homeowner doesn’t have to have a farm, product, or any other traditional ‘homestead’ good or service to take advantage of the homestead law–they just have to own the property it’s being applied to.

That said, there has been a massive resurgence of homesteading in the millennial generation–sort of. Thousands of influencers across social media document their zero-waste lives that use composting, in-home gardening, and reusable items (like fabric grocery bags, beeswax wrappings, and mason jars) to show that they can successfully and beautifully live off of only what they sustain and grow. Some even make their own products to sell like all-natural candles or deodorants.

The Homestead Exemption is Not a Homesteading Hall Pass

Depending on the location and size of your community, you may have a few homesteading homeowners yourself. Maybe they’re growing fresh habaneros and cilantro in their garden for homemade salsa, or knitting sweaters out of thread they made from their pet cat Fluffy’s fur (yes that’s a real thing–a real weird thing in my opinion but to each their own).

Whatever they’re doing, they still have to follow the HOA or condo association’s community guidelines. A homestead exemption does not give any homeowner the right to ignore community rules, even if those rules might clash with their new homesteading lifestyle. If they want to raise chickens to have fresh eggs in the morning and so they don’t have to go out and buy eggs from the grocery store, more power to them, but they probably can’t do it in an HOA, and they definitely can’t have chickens in a condo building.

Homestead exemptions may vary widely from state to state

Foreclosing in a Homestead State

It’s important to know that the homestead exemption varies widely between each state. Some states like New Jersey don’t even have the exemption at all. So for some HOA or condo associations, foreclosing on a home with a homestead exemption might ever happen. If it does happen in your community, remember that the community association has every right to foreclose and collect on a property even if it has a homestead exemption, but working with a specialized collection agency will help make the process that much smoother.

What you need is a specialized community association collection agency that will work with your owners and recover the past due amounts at no cost and no risk to the association. Give Axela Technologies a call today and receive a no-cost analysis and review of a collections process that will fit your community association delinquency problem.

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Is your community association indemnified from legal action resulting from collection activities? Don’t Get Sued, Get Axela!

Is your community association indemnified from legal action resulting from collection activities? Don’t Get Sued, Get Axela!

  • Posted: Jul 20, 2021
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Don’t Get Sued, Get Axela!

HOAs, Condominium Associations, Cooperatives, and other community associations are regularly adjusting how they do business based on new laws and updates to existing statutes that supersede their own governing documents. Lately, a barrage of new legislation has taken direct aim at how community associations handle the collection of delinquent fees from home and unit owners who have fallen behind on their fees and assessments. Failure to follow these laws can put an association, its management company, and even its attorney in danger of being sued.

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Legal Requirements

Axela Technologies has long been the leader in providing indemnification for HOAs, condominium associations, cooperatives and community association management firms by offering fully compliant third-party debt and delinquency collection services. We pride ourselves on keeping our business practices compliant with your state collection laws and are vigilant on newly passed legislation.

California’s Davis-Stirling Act, for example, outlines the “do’s and don’ts” for associations seeking to collect the fees that are owed to them from delinquent homeowners. Appropriately, each year the legislature has amended, revised and added numerous provisions of the Act. Requiring associations  to be aware of the latest requirements in order for the association to proceed with collection of delinquent assessments.

Now Florida has revised their own laws for collecting delinquent assessments, adding additional protections for homeowners that all condominium associations, HOAs, and association management firms must adhere to on top of all their existing workload.

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New Florida Laws

Among the most important changes in Florida law is Senate Bill 56: Community Association Assessment Notices (“SB 56”). The waiting period before notices can be sent to delinquent home or unit owners has been extended. HOAs already had to wait 45 days before notices that a lien was being sought against the debtor’s property could be sent. Additionally, a similar waiting period is needed for the post-lien notice of intent to foreclose.

Put simply, the new notice requirements will establish a 120-day period of collection efforts that associations must incur before proceeding with a foreclosure action. There will now be a mandatory 30-day courtesy notice of late assessment, a 45-day notice of intent to record a claim of lien, and a 45-day notice of intent to foreclose on that claim of lien. These changes take effect on July 1, 2021.

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The Attorneys’ Function

The largest portion of the remaining legislative changes refer specifically to the work performed by attorneys on behalf of the associations they represent. While attorneys are sometimes needed for filing liens and enforcing the security interests of the associations they represent, it is almost always a far better decision to engage with a third-party debt collection service to properly service both the association and the delinquent home or unit owner prior to getting an attorney involved. Axela complies with all state laws in every state that it services and fully indemnifies the association and assures full compliance with state and federal law as well as the individual association’s own governing documents.

Is your HOA, condominium association, cooperative, or association management firm struggling to keep up with the latest legislation and indemnification while simply trying to collect the money it is owed from delinquent home or unit owners? Even the simplest collection task can come under legal scrutiny. With our “no cost or risk to the association” assurance, engaging Axela Technologies for your delinquency collection needs may be one of the easiest business decisions you’ll make in this litigious environment. Get in touch today and let us show you how we can collect your money without putting your association or association management business at risk of violating the law.

 

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Beware of Predatory HOA Collection ‘Solutions’

Beware of Predatory HOA Collection ‘Solutions’

  • Posted: Jul 08, 2021
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Foreclosure Does Not Equal Fund Recovery

Mitch Drimmer | 7 July, 2021

Every association should have an attorney who is charged with overseeing any legal work that arises. But is collections included in that ‘legal work’?

Attorneys continue to be the de-facto solution for collecting past due assessments, but this is only a viable option when an association has the unlikely goal of foreclosing and owning the homes of delinquent owners. Any association that seeks to recover money due to them while helping a homeowner back to financial stability should look for alternatives to the legal process to achieve that goal.

Attorneys do not do collections. It’s that simple. When an attorney is engaged to do collections work, their plan of action involves filing a lien and foreclosing on a home. During the process, they might see some successful collection events as a result of their actions. Attorneys seldom make outbound calls and do not provide owners with online tools to cure the delinquency.

Collection attorneys are inherently disincentivized to collect on the account. Why? Because their revenue is generated from fees that get charged throughout the process. The quicker they resolve a collections file, the fewer fees will be earned on the account.

Unfortunately, collection files are commonly referred to attorneys because it is the most convenient and familiar solution for an association. This widely accepted practice is extremely disadvantageous to associations and does not put money in the association’s bank account, which is the objective of collections efforts. In fact, associations are often on the hook for legal fees, regardless of the outcome, further increasing the burden and risk caused by the delinquent account.

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Predatory HOA Collection ‘Solutions’ Cause More Harm than Good

Given the growing size and scope of the community association industry, a handful of specialized service providers have appeared to provide collections and/or financing solutions. In non-judicial states, such as California, the foreclosure process does not require legal action, meaning non-attorney firms can handle the task. Much like attorneys, these companies have a fee schedule that highly incentivizes them to push for foreclosure proceedings as quickly as possible.

The longer a file stays delinquent, the further along the process it goes, ultimately ending in foreclosure which generates the most fees for the firm. Again, many of these actions are directly at odds with the desire of the association, which is to recover the money that is due to them, as quickly as possible.

During the last real estate meltdown, a handful of specialized finance companies introduced what was then hailed as an innovative solution designed to mitigate the damage caused by delinquencies. By buying or funding delinquent receivables, these companies promised a much-needed injection of capital to struggling associations. Unfortunately, because they charged exorbitant fees, small debts by delinquent owners would quickly balloon into enormous obligations that made it almost impossible for an owner to catch up.

Given the statutory applications of payments in many states, proceeds were first applied toward the fees charged by the finance companies; associations would often not receive any of the proceeds from successful collection events. This so-called ‘solution’ soon turned from an association lifesaver to an association’s nightmare.

Ultimately, this scheme has proven to be an unfavorable option for community associations.

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An HOA Collection Solution that Focuses on Recovering the Association’s Money

While there are a number of legal or alternative solutions that community managers have relied on in the past to enforce assessment collections, there is little evidence that these antiquated and/or predatory approaches will work to cure delinquencies in the future. Associations today can turn to specialized collection firms that effectively recover funds due to them, without facing the consequences of foreclosing.

Today’s owners face a different dynamic, as an overwhelming majority have equity in their homes, which they will not want to risk losing. For this reason, the best solution is one that incentivizes a quick resolution without burying the association and the owner in unnecessary fees.

Thanks to the introduction of credit reporting capabilities, an owner’s obligations to their association will be placed on the same level of importance as their credit cards, car payments, and mortgages. It is now a viable option to work with collection agencies in lieu of foreclosing and putting people out of their homes, which is the wrong path to take from both the financial and human sides of the equation.

These are times when a community can engage professionals to work out a reasonable means to get these owners back on track and up to date on their obligations. This is not the time to spend good money to foreclose on families and remove them from their residences.

Associations and management companies that embrace technology-based solutions like Axela’s to streamline and improve their collection protocols will find themselves in healthier financial standing and with happier homeowners residing within their communities.

 

Contact Axela Technologies today to learn how easy it is to implement a technology-based collections solution for your organization.

 

 

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New Requirements for Collection of Delinquent Assessments

New Requirements for Collection of Delinquent Assessments

  • Posted: Jul 07, 2021
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New Requirements for Collection of Delinquent Assessments

Robert Kaye, Managing member of Kaye Bender Rembaum, recently wrote an informative and telling article explaining the new collection procedures mandated to be in effect July 1, as a result of  the 2021 legislation. Every board member, manager, and developer needs to be aware of these important changes.

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The Florida Legislature has revised the procedures for collecting delinquent assessments, which add additional steps and delays for the owner to pay before legal action can commence and/or attorney’s fees can be recovered. Senate Bill 56 has revised Sections 718.116 and 718.121 for condominiums; 719.108 for cooperatives; and, Section 720.3085 for homeowners’ associations. With these changes, the collection procedures for all of these types of communities will be substantially the same. The new laws are effective July 1, 2021.

Initially, the new provisions have revised the time for the notices sent by the association attorney for condominiums and cooperatives to 45 days for both the pre-lien first letter and the post-lien notice of intent to foreclose. (Homeowners’ associations were already at 45 days).

The most important and significant addition to this statutory change is the addition of a new notice requirement by associations before they may refer a matter to the association attorney for collection and recover the attorney’s fees involved. This written notice is required to be mailed by first class mail to the address of the owner on file with the association. If the address on file is not the unit or parcel address, a copy must be sent there as well. The association is also required to keep in its records a sworn affidavit attesting to the mailing. The new statute contains a form for that notice which is required to be substantially followed.

As the respective statutory provisions now indicate, associations must incur a minimum of 120 days of collection efforts before a foreclosure action can begin, with a total of three (3) separate required statutory notices. This includes the: (i) initial 30 day notice of the intent to refer the matter to the association attorney (for which no attorney’s fees can be charged to the owner); (ii) 45 days for the pre-lien notice period; and, (iii) 45 days for the pre-foreclosure lien period. As such, in order to best protect the interests of the association, it is recommended that the first 30-day notice be sent at the earliest possible date in the association collection process. This will typically be when the governing documents indicate the assessment to be “late”. Careful review of the governing documents by legal counsel should be undertaken to determine whether there is a specific “grace period” indicated in the documents before the assessment is considered late. Once that determination is made, the board should adopt a formal collection policy that incorporates these new statutory requirements, which will also need to be mailed to all owners. A new provision has also been added that begins with “If an association sends out an invoice for assessments. . .” to unit or parcel owners, such notice is to be sent by first class mail or electronic transmission (email) to the respective addresses for the owners that are in the association official records.

Moreover, if the association wishes to change the method of delivery of an invoice, the new Statute creates specific steps that must be followed precisely in order for the change to be effective. Specifically, a written notice must be delivered to the owner not less than 30 days before the change of delivery method will be implemented. The notice must be sent by first class mail to the address on file with the association. If the address on file is not the unit or parcel address, a copy must be sent there as well. In addition to the notice requirement, the owner must “affirmatively acknowledge” his or her understanding of the new delivery method. The written acknowledgment can be sent electronically or by mail, and must be maintained in the Official Records (although it is not available for inspection by other owners). However, without this acknowledgment, the association may not change the method of delivery. The Statute does not presently include a time frame for the owner to provide that acknowledgment or offer any remedy to the association if none is forthcoming. This can be particularly daunting or problematic when the association changes management companies, when the new company’s procedures differ from the prior company.Before the association attorney can commence any collection work for an association, it will be necessary for the association to provide all of the backup documentation of the compliance with each of these new statutory requirements, as well as the information previously required (such as a current account ledger). If any of the documentation is missing with the initial turnover information, there will be delays in the collection process, which can be detrimental to the association operation. It is therefore imperative that these new procedures are fully integrated into the association operation without delay. We recommend that you contact your Association counsel with any questions on the new procedural requirements to ensure compliance.

Jeffrey Rembaum’s, Esq. of Kaye, Bender, Rembaum attorneys at law, legal practice consists of representation of condominium, homeowner, commercial and mobile home park associations, as well as exclusive country club communities and the developers who build them. Mr. Rembaum is a Certified Specialist in Condominium and Planned Development Law. He is the creator of ‘Rembaum’s Association Roundup’, an e-magazine devoted to the education of community association board members, managers, developers and anyone involved with Florida’s community associations.  His column appears monthly in the Florida Community Association Journal. Every year since 2012, Mr. Rembaum has been selected to the Florida Super Lawyers list and was also named Legal Elite by Florida Trends Magazine. He can be reached at 561-241-4462.

 

 

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Fair Collections Everyone In Your Association Can Smile About

Fair Collections Everyone In Your Association Can Smile About

  • Posted: Jun 29, 2021
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Fair Collections Everyone In Your Association Can Smile About

When a condominium, cooperative, or HOA homeowner doesn’t pay fees and assessments owed to the condominium association, cooperative, or HOA on time, a problem is created for both the association and the homeowner. Associations are forced to act against the homeowner. Homeowners risk losing their homes. It all seems so unfair, doesn’t it?

At Axela Technologies, we believe “Fair is Fair”

Axela Technologies brings order to the chaos and a solution to the problem. Condominium Associations, Cooperatives, and HOAs can count on Axela Technologies to deal fairly with the debtor and assist them in getting caught up with their delinquent fees and assessments. Homeowners have a far better shot of getting themselves back in good financial standing without suffering the consequences of severe legal bills and expenses created when the matter is referred to an attorney.

Axela Technologies is a full-service debt collection agency using modern technology to solve an age-old problem. When home or unit owners stop paying their fees in a timely fashion, the whole association suffers. That just isn’t fair to all of the other homeowners who do pay on time!

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The Unspoken Challenges With Using Attorneys For Collections

Turning the matter over to an attorney conveys to the homeowner how serious their delinquency is. However, it isn’t necessarily the best decision because the attorney does not collect dues/fees. If delinquent payments stem from the homeowner’s financial difficulties, placing a lien on the property hinders the homeowner from selling the property for debt repayment. Buyers will want the lien paid off before closing, and banks are often unwilling to refinance a mortgage or provide a new loan to the owner until the lien is satisfied.

This scenario ultimately impedes the Community association from their goal of collecting delinquencies. Attorneys are useful and necessary but only if all other methods of collections have failed. The attorney will bill the association for their services. Again, the homeowners who do pay on time may be stuck paying that bill, too. That doesn’t seem very fair, does it?

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Fair Collections Are Innate With A Merit-Based System

Axela Technologies not only collects the association’s money, but we perform on a merit-based system. In other words, if we don’t collect from the delinquent home or unit owner, we don’t get paid. Our interests are firmly aligned with the interests of the association.

You might be wondering how we can make such a bold claim and wonder how we get paid for our collection services. Because we specialize in association collections and employ a great deal of technology to assist in our collection efforts, we have become particularly good at what we do. We have reasonable fees that we pass along to the delinquent home or unit owner. We collect our fees from the delinquent owner. It is efficient and effective and, most importantly, FAIR!

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We View Foreclosure As The Last Result

We typically clear up 95% or more of all delinquencies BEFORE the matter needs to be turned over to an attorney for foreclosure. We view foreclosure as the end result of a home or unit owner who simply wouldn’t respond to reason over the course of our collection efforts.

I know this sounds too good to be true but it isn’t! Kindly email, call, or schedule a Zoom conference with a member of Axela Technologies business development team so we can take a closer look at your association’s needs and offer a modern solution for your consideration. After all, Fair is Fair!

 

 

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Condo and HOA Lien Foreclosures…A National Shame by Axela Technologies

Condo and HOA Lien Foreclosures…A National Shame by Axela Technologies

  • Posted: Mar 09, 2021
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Condo and HOA Lien Foreclosures…A National Shame

by Axela Technologies

 

How many times have you read a story about an HOA foreclosing on some unfortunate family for a fraction of the value of the home? For example, the veteran who, upon returning from active duty, finds that his HOA has foreclosed and taken title to his house for a mere pittance? “Soldier in Iraq Loses Home Over $800 Debt” reads the story, and life goes on at the HOA.

Should the HOA have foreclosed on this person’s house? Why did they foreclose on this property? What could have been done to prevent this gross injustice from happening in the first place? Condo and HOA lien foreclosures should not be the first go-to solution when a unit becomes delinquent.

For too long, community associations have been a national disgrace, rather than a source of national pride. No HOA wants their name to be mentioned on the nightly news because we all know it is far more likely to be an exposé than a feel-good piece. But if we want the bad press to stop, we need to take a good, hard look in the mirror.

 

Communities Often Jump Straight to the Nuclear Option of Lien Foreclosure. Can They Do That?

When you buy a house or condo in a community association, most likely you’ve taken out a mortgage, and if you don’t pay your mortgage, the lender has the right to foreclose and force a public sale of the property. So too can condominiums and homeowner’s associations foreclose on your property for non-payment of maintenance fees.

In fact, per most state laws, your homeowner’s association or condominium association can potentially foreclose on your property even if you are current with your mortgage. Also, your mortgage will remain in first position and the HOA cannot sell the property with marketable title unless the first position lien has been satisfied.

All that is required is for the association to cause an attorney to file a lien, have the attorney send a notice of foreclosure, have your day in court, and before you know it you are being evicted from your home that may have equity in it because you were delinquent for a much smaller amount than what the property is worth. Not a good deal for you and certainly not a smart business move for the association.

It’s not to say that the community is in the wrong. The assessment fees are rightfully owed to the association, and they have the right to attempt to collect it. However, jumping to the nuclear option prior to attempting diplomacy (negotiating with the owner to satisfy the debt) never goes well for anyone.

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Winrose vs Hale ‘Shocked the Conscience’ of the Court

In an appeals court decision in Supreme Court South Carolina, the association foreclosure was REVERSED and REMANDED. In the case of WINROSE HOA v. DEVERY HALE the court was shocked by this action and even stated so in their decision: “As a result, in determining whether the purchase price was grossly inadequate …. the bid shocks the conscience of the court.” The story is quite simple and may sound familiar to you as this happens every day and really should not.

The Hales were solid citizens who purchased their home twenty-one years ago for $104,250.00 and paid their mortgage and fees on time. The home is valued at $128,000.00 and the property has $60,000.00 of equity in it. After missing a $250.00 maintenance fee payment the HOA foreclosed on their $566.41 lien (to satisfy delinquent assessments and interest) and the winning bid on the house was $3,036.00. The Hales had been robbed, and the association had acted too rashly in moving to foreclose upon a house for such a pittance. The buyer was Regime Solutions, LLC who are investors that seek out and purchase properties at foreclosures.

Due to the Hales failure to file a responsive pleading to the foreclosure complaint, a huge mistake on their part, they were ultimately defaulted and were not served with any further court papers. In fact, they did not even receive a copy of the judgment of foreclosure. When they found out they were at risk of losing their property, they tried to make good to redeem their house and paid a bill to the master and in fact, the law firm representing the HOA sent the Hales a notice that the lien had been satisfied. The HOA, however, did not withdraw its suit.

Three months after, the HOA filed the affidavit of default and the master authorized a judicial sale of the property at public auction. The Hales were not notified of this order due to a rule in South Carolina, which essentially states the time to appeal doesn’t change, despite lack of notice (rule 77(d), SCRCP). Two weeks later without notice to the Hales, the property was sold and the new owner moved to evict them. This of course led to court complaints, a trial, and finally an appeal before the Supreme Court who reversed and remanded the foreclosure order saying that the sale at auction for $3,036.00 “shocked the conscience of the court,” which is quite strong language from the Supreme Court.

 

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Investors Use Shady Business Practices To Take Advantage of Unsuspecting Homeowners through HOA foreclosures

It came to light that Regime’s business model was not to assume the senior mortgage to own the property but to give back the property to the original owners at a hefty fee. (Sadly, this is not an uncommon practice.)

The court decision went on to say: “While the HOA had the legal right to pursue collection of the debt owed, including foreclosure of the Property to satisfy that debt, this foreclosure action quickly morphed into a proxy to capitalize on a small debt. We are especially troubled by Regime’s participation in a foreclosure proceeding to accommodate its business model of leveraging a nominal debt to secure an exorbitant return from homeowners who fear the prospect of eviction.”

Most important the court stated: “Regime would not have had an opportunity to engage in its questionable business practices had the HOA and its attorney not chosen to pursue foreclosure in the first place. The Hales were minimally in arrears on their HOA dues, yet the HOA foreclosed on a $128,000 home in its eagerness to collect the outstanding $250—an overdue amount less than 0.2% of the fair market value of the home, notwithstanding the amount of the outstanding mortgage.”

Finally, the court opined: “A foreclosure proceeding is a last resort, not a business model to be swiftly invoked for the purpose of exploiting property owners. We do not countenance the improper use of foreclosure proceedings by the HOA, its attorney, or Regime.”

Justice ultimately prevailed in this case, and the Hales kept their house and were not evicted although there can be no doubt that they had suffered and worried throughout this entire process. Not every homeowner who goes through this process is so lucky to get away with only a terrible story to tell.

 

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Communities Are Getting Bad Advice, and It’s Costing Them, in Real Dollars and in Reputation

What went wrong is an amazingly simple question to answer. The association was convinced that they should foreclose on a delinquent unit before they even tried to engage the owners to review the consequences of their situation. While it may be true that they received one notice, they were advised by an attorney that the matter had been resolved. This was a total failure of communication.

The association could have had more contact with the owners and advised them as to the course of action that was being taken against them. Nobody said anything to them – and in this industry, such a thing is not uncommon.

When a delinquent unit goes over to an attorney the object is to “enforce the security interest” and not to collect. The association’s board was not properly informed that less drastic action could be taken. Somehow the board was convinced not to recover money from the Hales but rather to take the property.

No collections activity is reported in the narrative that is presented in the case. It was a bad business decision because eventually, the association had to pay a lot of legal fees. This situation could have been resolved much more easily and cost-effectively.

A Lawyer Who is Just Enforcing Security Interests Is Not A Debt Collector

This matter did not have to be resolved by a “legal solution” but rather by a “collections solution.” As a matter of fact, in a case decided by the Supreme Court of The United States, DENNIS OBDUSKEY v. McCARTHY & HOLTHUS LLP the Court held, “A business engaged in no more than the enforcement of security interests is not a “debt collector” under the FDCPA, 1032*1032 except for the limited purpose of § 1692f(6). Pp. 1035-1040.” This means that the association did not even try to collect the past due debt and if they used an attorney, he/she is not even bound by the Fair Debt Collections Practices Act.

The Supreme Court in South Carolina in all its wisdom said loud and clear: “A foreclosure proceeding is a last resort”

 

HOAs and condo associations should collect, not foreclose

Community Associations Have a Better Option to Collect Delinquent Fees

So how should a community association collect delinquent fees? In a way this question just about answers itself. The answer is that they use a collection agency that is specialized in collections for community associations. Community Associations need to COLLECT, not foreclose and evict owners from their homes. Associations need to have adequate cash flows and a minimum amount of legal cases.

Axela Technologies would be honored to be that company for your community association. We are a licensed collection agency and we only work on delinquencies from Condos and HOAs. We are different because our objective is not to foreclose on a house, which is the action of last resort.

What Axela does is engage the owner and work with them to pay their past due assessments. Axela will send demand letters, provide internet portals to delinquent owners, make outbound calls, report delinquencies to credit bureaus, receive inbound calls, work out payment plans, and notice mortgage holders that the borrower is delinquent on their maintenance fee payments as per the PUD Rider.

Now is the time for your community association management company and/or community association to put the right process into place when you are confronted with delinquencies. Foreclosing and evicting does not have to be the way. Click here to request your free, no-obligation collections analysis today.

 

 

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Condos and HOAs who are forced to collect on delinquent accounts must consider the proper and most important ETHICAL solution. “Ask Mr. Condo” Bob Gourley

Condos and HOAs who are forced to collect on delinquent accounts must consider the proper and most important ETHICAL solution. “Ask Mr. Condo” Bob Gourley

  • Posted: Feb 17, 2021
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Condos and HOAs who are forced to collect on delinquent accounts must consider the proper and most important ETHICAL solution.

by Axela’s “Ask Mr. Condo” Bob Gourley

 

Why Ethical Collections Really Matters for HOAs and Condominium Associations

What happens if 5% or more of the members of a condominium association or HOA don’t make timely payments to the association as expected? What if one or more homeowners stops contributing altogether? How can condominium associations and HOAs protect themselves while not playing the role of the villain in the eyes of the delinquent homeowners? Here is the argument in favor of ethical collections.

What is in the best interest of the association or the delinquent homeowner?

No one can question the need for a condominium association or HOA to act against delinquent owners within their association. After all, successful collection and distribution of common fees and assessments are the only way a condominium association or HOA can survive. Budgets are prepared annually. On one side of the budget are all of the known and anticipated expenses, contributions to Reserve Funds, and other expenses the association will face in the upcoming year. On the other side of the budget are the income items to pay for those expenses, namely the anticipated income from common fees and assessments from individual homeowner and unit owners within the association. A balanced budget can only be maintained if both sides of the equation are accurate.

Condominium associations and HOAs are typically not-for-profit businesses. The governing documents that create the bond between the unit owner and the association usually give the association serious clout when it comes to collecting common fees and assessments in a timely manner. Additionally, many associations engage an attorney to assist them in contract negotiation, interpretation and modification of governance documents, and much more. It’s not surprising, then, that many condominium associations and HOAs simply turn to their attorney when it comes to matters of collection of delinquent common fees and assessments. But boards should be asking themselves, is that wise? Is that in the best interest of the association or the delinquent homeowner? Is it the best way to protect the association’s assets and actually collect the money it is owed? Is it ethical?

 

The goal should be to educate delinquent homeowners and help them get current

There are several reasons that a condominium or homeowner can become delinquent. The simplest reason is that they simply don’t have enough money to pay all of their bills. Credit card bills, utility bills, car payments, and even the mortgage all need to be paid. There are perceived repercussions from missing any of these payments, including having utilities turned off, a car repossessed, or a foreclosure action from missed mortgage payments. For these reasons, a person who is short of cash might make the decision to defer or miss payments on their common fees or assessments for the simple reason there doesn’t appear to be any repercussions from doing so. It is a mistaken notion that is all too common. Other reasons include an owner’s death or severe illness, a lack of receiving or paying attention to communications from the condominium association or HOA, and even plain forgetfulness.

Whatever the reason, once the unit or homeowner gets behind in their common fees, the goal should be to educate them and get them back up and current so that their lack of payment doesn’t hurt the other association members who are paying on time.

 

Legal fees can even outweigh the amount the homeowner owes to the association

There is a huge difference between attempting to collect a debt and simply taking legal action against the debtor. Both have very real consequences to both the condominium association or HOA and the delinquent homeowner. Simply referring the matter to an attorney isn’t an attempt to collect a debt. It is an action that will lead to a lien and eventual foreclosure if the debt isn’t settled. Used as a first resort, it is an unethical solution because it harms the homeowner and puts the association at risk of losing additional money as the attorney will get paid for the legal work regardless of the outcome.

Since the delinquent unit owner is encumbered to the terms of the association’s governing documents, the hefty and often burdensome cost of the legal fees is also lumped onto the delinquent amount the homeowner owes to the association. In some extreme cases, the legal fees can even outweigh the amount owed to the association. Can you blame the delinquent unit owner for crying “foul” when this happens? It is unfair and unethical.

 

A specialized collection agency can work with the homeowner without threatening to foreclose

A far better and less expensive solution would be to work with a specialized collection agency that fully understands the plight of the condominium owner or HOA homeowner who has missed a few payments and become delinquent.

Axela Technologies is just such a collection agency. In addition to offering a no upfront cost to the condominium association or HOA, the fees for using a collection agency to service the debt is far more agreeable to the delinquent homeowner. They have the opportunity to address their delinquency and get themselves back in good standing with their association. A specialized collection agency can work with the homeowner politely and professionally, encourage a repayment plan, without involving the courts or threatening to foreclose on the homeowner’s home unless, and only unless, the debtor is unwilling to resolve the debt.

 

95% of delinquencies are settled without the need for the hefty legal expense of an attorney

In our experience, that is a rare occasion that only happens about once for every 20 accounts referred. That means up to 95% of delinquencies are settled without the need for the hefty legal expense of an attorney. Not only is this solution far less expensive for all concerned, it’s also a far more effective method of collecting delinquent common fees and assessments.

An ethical collection strategy needs to be considered in all cases of homeowner delinquency and not just because it is the right or ethical thing to do. Many associations have felt the bitter sting of financial loss after pursuing a strictly legal “lien and foreclose” strategy. Savvy homeowners who get swamped with legal fees on top of delinquencies are far more likely to file their own bankruptcy leading to the association simply “writing off” the delinquency and the legal fees spent trying to collect.

Using Axela Technologies and their ethical collections strategy proves effective 19 times out of 20. Ethical collections save time, save money, and encourages a “win/win” for the association and the homeowner. Take a look at your current condominium association or HOA collections strategy today. If it isn’t ethical, it’s time to talk to Axela Technologies.

 

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Collections Tools for Self-Managed HOAs & Condos by Bob Gourley @Axela Technologies

Collections Tools for Self-Managed HOAs & Condos by Bob Gourley @Axela Technologies

  • Posted: Jan 28, 2021
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Collections Tools for Self-Managed HOAs & Condos

by Bob Gourley @Axela Technologies

 

When a condominium association or HOA makes the decision to self-manage, the Board of the association often must make difficult decisions about what to do themselves and what functions to outsource to third-party entities. What you need are the tools for collections for your self-managed condo or HOA.

Collecting common fees and assessments is the only way a self-managed association can fund itself and provide the goods and services to homeowners called for the association’s governance documents. Defaulting on these provisions is not an option. Ideally, all unit owners within the association remain solvent and pay their common fees and assessments on time. But what happens when they don’t? What tools are available to a self-managed condominium or HOA?

 

The High Cost of the Traditional Collection Method

Traditionally, collection of past-due common fees and assessments required hiring an attorney to represent the association in bringing forth a lien, and, if needed, a foreclosure action. While this approach can bring the association the title to a delinquent unit owner’s home, it isn’t always a profitable or even practical solution for the condominium or HOA.

Hiring an attorney creates additional risk in the form of legal fees that the association is bound to pay, regardless of the outcome of the legal actions. A well-intentioned association could very well spend more money than it could ever hope to receive in an attempt to collect past due monies they are owed and need to operate their associations.

 

New, Technology-Based Collections Tools for Self-Managed Associations

Axela Technologies decided to address the problem of common fee and assessment delinquency in a different and modern manner. As a full-fledged collection agency, Axela Technologies is able to offer true assistance to condominium associations and HOAs that find their budgets in jeopardy due to deficits created by delayed or delinquent common fees and assessments.

Charging no upfront money to the condominium association or HOA, Axela Technologies takes on the risk that would have been incurred by the expense of an attorney. The cost of using Axela Technologies is minimal and is passed on through the delinquent homeowner once the account is outsourced for collections.

This is an optimal situation for the association, and, to some extent, the delinquent homeowner, who is provided an opportunity to pay his common fees and assessments without having the onerous legal fees of an attorney added to his or her outstanding balance. The association minimizes risk and does not have to pay any fees to Axela Technologies. Additionally, Axela Technologies boasts a very high rate of successful collections, with only 5% remaining delinquent and requiring the use of an attorney to bring a foreclosure action against the delinquent homeowner.

Keep in mind that a foreclosure action still doesn’t guarantee a positive outcome for the self-managed condominium association or HOA. All the foreclosure action will do is gain title to the unit or home. It still needs to generate income, either through sale or rental, before the association may see some financial relief. While the attorney may assist in the foreclosure action, Axela Technologies will keep a vigilant eye on any surplus funds or other possible recovery for the condominium association or HOA. The goal is full recovery with minimal risk for the association.

 

Outsource Collections to Reduce Risk and Maximize Debt Recovery

Unless a self-managed condominium association or HOA is so well-funded that financial risk is of no concern to them, they would be well advised to outsource their collection efforts. Further, unless a self-managed condominium association or HOA wishes to risk spending money on legal fees, they would be well advised to outsource their collections to Axela Technologies. Axela Technologies’ history of successful condominium and HOA delinquency collection with no upfront cost or risk make them the easy choice.

The fact that their collection costs are far less than the legal fees charged by an attorney makes Axela’s collections tools a better choice, not just for the community, but also for the delinquent homeowner, giving them a much more likely chance to pay their delinquent fees and assessments to the association. Outsourcing collections to Axela Technologies is about minimizing risk and producing a successful outcome for all involved.

 

Learn more about Easy Collect, Axela’s collections solution for community associations here.

 

Need a Better Cash Flow for Your Condo or HOA?

YOUR COLLECTIONS PROCESS MAY BE WHAT’S HOLDING YOUR BUDGET BACK. LET US HELP WITH THIS FREE ANALYSIS.

A poor collections process can lead to a number of negative symptoms for a community association, from budget shortfalls to never-ending legal fees to loan denials for capital improvements. If your community is suffering, you may be looking in the wrong place for the right solution.

Axela Technologies specializes in community association collections. Our experts have years of CAM industry knowledge, combined with a deep understanding of collections processing.

Learn More!   In just 30 minutes, our experts will work with you to identify the areas in your current collections process that are not working, and give you actionable advice on how to improve your current process, increase the amount you are collecting, and save your community money.

Fill out the form to set up your free collections analysis now. Your analysis is completely free, and you are under no obligation to take any action.

It’s time to take a good, hard look at your collections process. Your community members, your board, and your budget will thank you!

 

 

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