10. Factoring my receivables is a good business decision.
Some ramifications have been boards not being in a position to make decisions and when they want that authority back, in most cases, it may means not only reimbursing the advance, but also costly administrative expenses.
9. Foreclosure is my only option for collection.
There are other options, including the underutilized “money judgment”. In a proactive program, if litigation is necessary, you can have your case heard by a judge in approximately 90 days of filing a case.
8. I can’t put a homeowner on a payment plan.
Sure it can be done, and should be done in some circumstances. Reducing the A/R is the ultimate goal.
7. I don’t pay for the COL process with my attorney.
We’ve seen attorneys who advance the Clam of Lien process, charge as much as $500 for the process and hold all the monies in escrow till the account is current. We’ve seen associations make the intentional decision not to file for foreclosure (and it’s a good decision) and then the attorney has the contractual right to invoice the association for the advanced work. The association is paying.
6. I have to change my internal collection process.
With ARI, the program established with your property management company does not have to change. We come in at the point that you’re ready to send the matter out for collections. ARI becomes a compliment to your collection program.
5. Safe Harbor applies to all Foreclosure Actions.
Banks have a limit of exposure for association dues of 12 months or 1%, but only banks. Most assignments and Investors are not granted the same rights.
4. Getting a Money Judgment waives our foreclosure rights.
No, you have the right to seek a Money Judgment and this does not waive your right to file for foreclosure in the future.
3. My attorney cannot use your letter series for foreclosure, and we’ll have to start all over!
ARI is more than happy to share our work with your attorney if needed. Remember that over 70% of our placements are resolved during the statutory wait period.
2. Only an attorney can help us with collections.
A licensed third party collection agency is qualified to assist you with any collection matters. Our processes and systems have proven effective and avoid any form of court proceedings in almost 80% of our cases.
… and the #1 Misconception about Association Dues Collections:
1. My property manager will make the nice calls for us.
Unless your Property Management Company is a licensed third party collection agency, following 5 plus Federal Acts as well as State and local legislation, they are not authorized to make collection telephone calls.