Benefit Summary

In Summary, the benefits of using LMF include:

• Capital Benefits:
  • Capital is advanced to the association up front.
  • All capital advances and expenses incurred are completely non-recourse to the association.
  • There are no association cash expenses paid to LMF.
  • LMF pays all legal fees related to collection. 

 Success-Driven Legal Efforts:

• • Legal work will be performed by a specialized attorney who concentrates only on association collection needs.
  • Legal work will be performed entirely at LM Funding's expense with no fees or costs billed to the association.
  • Accrued legal fees and costs that may exceed a lien payoff are never billed back to the Association.
  • LMF's attorneys will vigorously pursue full payments of all of the association's and management company's charges to delinquent accounts.
  • LMF requires its attorneys to provide free of charge to associations monthly reports regarding the status and collection activity taking place on each account so the board and magagement will stay informed.
  • LMF requires its attorneys to be available by phone or email free of charge to answer an associations collection related questions.

• Collections:
  • LMF’s attorney will perform all normal collection processes and will seek full amounts owed to the association including charges for letters, liens, dispute handling, answers, and foreclosures if necessary.
  • Upon first mortgage holder foreclosure action, most attorneys will file an answer requesting the statutorily provided “lesser of 6 months or 1% of mortgage” payoff amount. LMF’s attorneys will answer with a defense and aggressively pursue FULL payoffs.
  • LMF’s profits are directly proportional to the amounts that are collected. Because of this, LMF is strongly incentivized to collect payment in full, resulting in a greater monetary recovery to the association.
  • LMF only can profit by obtaining full payoffs.

• Shorter Collection Times:
  • By negotiating with the mortgage holders in a variety of ways, LMF can create situations in which delinquent accounts will be brought current more quickly.
  • LMF has the resources available to purchase notes from mortgage holders directly. This unique capability gives LMF an edge in mortgage foreclosure and payoff negotiations that can result in fuller and faster payoffs to the association.

• Compare the Worst Case Outcome -- When Bank Forecloses, Pays 6 Mnths Assessments.
  • Collection Attorney - Attorney's fees to defend the foreclosure eat up payoff and association gets nothing or may owe more attorney's fees.
  • Our Competitors - Association repays purchase price and pays attorney's fees.
  • LM Funding - LM Funding pays association approximately 4.5 months of assessments up front which the association keeps and LM Funding pays all attorney's fees.
  • With LM Funding, an association is always better off.  We'll prove it.