Condo Association & Size:    

All Florida Condo Associations considered, although we prefer Associations with over twenty units.  Associations with a minimum $25,000 of delinquent association assessments and/or Associations with over 5% of units with delinquency issues are preferred. 

Minimum Initial Funding for Association:

$25,000 minimum funding, although smaller fundings considered on case by case basis.  

Maximum Fundings for Association:

No maximum funding limit for a single Condo Association.   Our program is designed for large dollar volume.  We prefer Associations that have a high percentage of unit owners delinquent on their assessments.  

Maximum Initial Funding Per Condo Unit:

We will generally not fund more then 6 months of delinquent assessments for any one condo unit until we can better assess collection and recovery status of that particular unit.  However, 7 months of collection efforts is projected to be more then typically needed to bring any delinquent unit’s assessments current or to less then a 6 month delinquent balance.  

Developer Owed Assessments:

We will consider funding delinquent Developer owed assessments only in months AFTER the Developer has relinquished total control of Association.

Developer Controlled Association:

We will fund delinquent Association assessments on units not owned by a Developer while the Developer is still in control of Association.  We will not fund or seek collection against Developer owned units while the Developer maintains any type of Association control or guaranty of the Association Budget.

Association Compliance & Certification:

LM Funding requires that an Association be duly organized and in good standing with the State of Florida.  LM Funding will review the Association’s Articles, Declaration, By-Laws and minutes.  Due diligence will also include review of financial statements, management agreements, pending litigation and other materially relevant documentation.  Entering into the LM Funding Agreement may require board or owner’s vote of approval which shall be determined by LM Funding or possibly the legal opinion of Association’s counsel.

Funding Advance to Association & collection balance:

 LM provides up to 80% advance of delinquent Association assessments directly to Association upon mutual execution of our Assignment agreement.  The balance of Association assessments will be paid to Association when the delinquent fees are actually recovered by LM.  LM projects 100% recovery of most unit’s delinquent assessments to Association within 7 months.

LM’s funding & assignment Agreement:           

LM funds upon execution of an agreement between LM and Condo Association encompassing all obligations of the parties.  In exchange for LM advancing money to Association for delinquent Association assessments, the Association will legally assign all of its collection rights to LM, granting LM the ability to collect, assess default interest and fees, lien, foreclose, and recover costs associated in collecting delinquent assessments.  Association will grant LM exclusive power of attorney to pursue all collection efforts Association has by law.   

LM fees to Association:

Association pays no fee or retainer to LM.  The Assignment Agreement caps the Association’s recoverable assessments to the face value of delinquent assessments.  All default interest, late fees, and recoverable expenses over and above the face value of assessments paid to the Association will be retained by LM.  In event LM files for foreclosure(s) in order to collect assessments, and foreclosure action results in taking ownership of a condo property, LM’s opportunity to purchase senior mortgage notes, or any other action that LM may benefit from outside of the collection of delinquent assessments in relation to our Agreement will be the exclusive and sole rights of LM.

Delinquent Assessments on condo units LM willing to fund:

Investor owned/unoccupied units….Yes

Investor owned/leased units……….Yes
owner/occupied units………………Yes
Developer owned units…………….Yes*

Lis Pendens units…………………Maybe
Foreclosed/lender owned units……..Yes

Condo Converter owned units:…….Yes*

Investor owned & in Bankruptcy…..No

Owner occupied & in Bankruptcy…No

Owner has pending litigation with Association…No

Owner is on Association board…….No

Special Assessments……………Maybe

 *assuming Developer has relinquished control of Association.