Our approach is simple. We’re going to right wrongs-we’re going to make sure you’re not left holding the bag for something that shouldn’t be your responsibility. “We buy problems,” is our way of saying you shouldn’t have to pay condo fees for those who fail to live up to their responsibilities. So we came up with a straightforward solution to delinquency that works, and even offers less risk.

With us, things happen fast. Instead of waiting for expensive collection attorneys to return a small portion of your unpaid dues, LM Funding gives funds directly to your condo association – immediate capital that allows you to pay bills and operate your business without getting involved in the hassles of collection.

Rather than charging for our time as collection attorneys do, LM Funding earns its fees by aggressively managing the collection process for you, and only when fees are successfully collected does LM make money, by keeping only the late fees and interest charged against the delinquent owners account. You give us the right to collect the debt, and we manage that process so you don’t have to. However, we are not a law firm or a collection agency. To collect the money you’re owed, we employ Business Law Group – an independent organization that specializes in collection and works directly for you.

Your association pays nothing out of pocket to LM Funding, and we pay all legal fees and costs on behalf of the Association. You never pay anything. Period! Moreover, LM Funding assumes all risks associated with collecting delinquent assessments. Even in the unusual event we were somehow unsuccessful in collecting the delinquent assessments, your association will never have a legal bill and the association gets to keep all of the money.

What is LM Funding, and where is it based?

Based in Tampa, Florida, LM Funding is a privately owned Limited Liability Company that provides capital to condo associations. LM Funding is extremely well capitalized, with well over 350 funded associations throughout Florida.

LM Funding sounds like a collection company or law firm that offers collection services. Is this correct?

No. LM Funding is not a law firm or a collection agency. We just provide condo associations with capital to cover delinquent dues and expenses. We provide associations up to 12 months of assessments or 1% of the mortgage amount, whichever is less, for bad debt, and pay the balance after it’s collected. LM Funding uses the Business Law Group to collect on behalf of the association. This is better for associations than hiring collection firms who usually keep a large portion of the debt they collect, and even charge collections costs if they don’t collect the debt. Conversely, LM Funding earns it revenue solely from the collection of interest and late fees once those fees have been successfully collected.

How quickly can LM Funding provide money to an Association?

Once an association signs an LM Funding Purchase Agreement and provides us with its accounting and due diligence information, we can normally fund within 5 days.

Will LM Funding take all units or do they hand pick only the ones they want?

We will accept all accounts that are delinquent. This includes the really old ones and the newest ones. LM Funding will fund each account with the exception of accounts that are in a “Bankruptcy” status. We are happy to take those “bankrupt” accounts and pay to have them monitored them until the bankruptcy is lifted and a final collection is made. However, because of the uncertain status of the bankruptcy, we cannot fund units with owners who have filed bankruptcy.

Do we give up control to LM Funding and do they now get to make all of the decisions?

Absolutely not! The Board of Directors always has control and decision making authority regarding delinquent units that LM Funding is working with. In the event of a short-sale, LM Funding is only authorized to accept a full payoff. Any and all offers will be given to the Board in writing, and the decision to accept less than a full pay-off is always up to the Board. The Board may negotiate down the principal balance of assessments to any amount they decide. While we will always have legal counsel advise as to the likelihood of a full payoff, the final decision will always rest with the Board.

What if an association has some delinquency issues, but not enough to affect its ability to pay bills?

LM Funding would still be appropriate. Carrying any amount of bad debt is never ideal, especially when LM Funding can provide no obligation cash and free collection services. Plus, associations that have some delinquent assessments are likely to have more and more. The sooner we get involved; the sooner delinquency issues can be controlled. Having an agreement in place with LM Funding ensures an association’s cash flow will not be interrupted by a catastrophe, such as a hurricane or fire.

What if our delinquency problem continues to grow?

LM Funding is like a free insurance policy. It costs an association nothing out of pocket to sign up and it’s an immediate way to manage collections going forward. For example, if next month 3 unit owners don’t pay their dues, instead of having to go after the delinquent owners themselves, the association simply gives LM Funding the accounts. LM will provide a check to fund the maintenance fees and then manage the collection process for the Association until the collection is completed.

Our condo property was recently constructed (or converted). Some of its units are still owned by the developer who is guaranteeing their portion of association expenses. Does LM Funding cover this?

LM Funding will fund against the units the developer has sold. LM Funding cannot fund against developer-owned units while the developer is guaranteeing Association’s expenses, or fund against developer-owned units while the developer controls the association’s board. LM Funding will consider funding against developer-owned units only after the developer has relinquished total control of the association and is no longer guaranteeing assessments.

How much money can LM Funding provide to a condo association?

LM Funding has no maximum funding amount. Initial funding amounts are considered on case-by-case basis. LM Funding advances amounts up to 12 months of unpaid assessments or 1% of the original mortgage amount; whichever is less, which is the Associations worst-case collection amount under Florida Condominium Law (F.S.§ 718.116). When the account is paid off in full, the association receives the balance of unpaid delinquent assessments collected, including assessments that may accrue after LM Funding purchases the accounts, and LM Funding keeps the interest and late fees collected.

When will a unit’s association assessments qualify for LM Funding?

LM Funding will fund against unpaid assessments as soon as the grace period for payment(s) has expired, and they are considered delinquent pursuant to the association’s declaration and by-laws. LM Funding only funds against regular assessments but will collect any special assessments and other fees, fines, or amounts that appear upon the ledgers. LM Funding cannot fund against special assessments or these other charges since a mortgage foreclosure may eliminate them.

If LM Funding isn’t a collection firm, how does it earn its revenue?

LM Funding earns its revenue solely from the collection of interest and late fees. LM Funding purchases the right to collect on the association’s delinquent assessment balances, and the association authorizes LM Funding to collect on behalf of the association. Associations receive ALL unpaid assessments collected, and LM Funding keeps all interest, and late fees.

Does the association have to repay LM Funding for money funded if LM Funding is unsuccessful in collecting the debt from condo owners?

No. LM Funding assumes all risks associated with collecting delinquent assessments and in the event we are unsuccessful in collecting the assessments funded to the Association, the Association has no financial obligation to LM Funding. In no event will the Association ever have to write LM Funding a check for any amount.

Is the association liable for any of LM Funding’s costs and expenses to re-collect assessments?

No. LM Funding will not only pay for all of the legal costs of pursuing delinquent assessments, but will also do all the work. Associations no longer need to retain attorneys or deal with this process…LM Funding will handle all of these headaches for you.

How does an association enter into an LM Funding agreement? Does it require owners’ meeting and vote?

Once an association submits the online questionnaire, LM Funding will prepare a Funding Estimate. If the association is interested, LM Funding will then provide its standard Purchase Agreement for review by the board. Usually only board approval is required. Once the Purchase Agreement is signed, the association sends ledgers of accounts it wishes to sell to LM Funding. LM Funding hires a title company to review the accounts and prepares a Schedule of Assignments, which simply lists the accounts and amounts funded. The association and LM Funding execute the Schedule of Assignments and LM Funding pays the association.

What if a third-party professional management company or CAM already is managing our association?

LM Funding works with professional management companies and self-managed properties. LM Funding is not an Association manager and has never engaged in the management of condominium association, even though many of our account executives carry CAM licenses. Our business is designed solely to support the existing Association management by providing them working capital and engaging Business Law Group to collect delinquent assessments. LM Funding and its attorneys coordinate collection efforts with the management companies and their accounting staff. LM Funding can integrate with all major association accounting software platforms and can create required “bride” programs to limit the amount of work required by a management company.

What is LM Funding’s protocol for treating condo owners in regards to late payments, assessing interest, and fees, filing claim of liens, and taking foreclosure actions against condo owners?

LM Funding engages attorneys to enforce all rights provided to the association by its declaration, by-laws, and Florida Statutes, which dictate the necessary notices required to collect. LM Funding requires that attorneys be firm but respectful in their efforts to collect delinquent accounts. All communication with owners is done in writing to ensure the accuracy of communications. If an owner has a willingness and ability to pay assessments on a current basis, a payment plan will be offered where the entire outstanding balance can be recovered in approximately twelve (12) months.

Do we have to sell you all delinquent accounts?

No. Associations are not obligated to sell any specific accounts to LM Funding if they don’t wish to sell them.

Will LM Funding fund accounts that are already being handled by an association attorney or already in lien or the foreclosure process?

Yes. LM Funding will assist with the turnover of files from the previous attorney and fund and collect on all of the accounts in lien or in the foreclosure process, as long as the Association has not taken title to the unit.

As a property manager, I earn fees for assisting in collection efforts for file preparation, estoppels letters and other tasks. Will selling delinquent accounts to LM Funding affect these, and how will I know what is going on with regards to collection efforts?

No. To the extents fees, such as estoppels fees, earned by a management company apply to the collection of LM Funding accounts, they will be invoiced and collected. LM Funding requires the attorneys to provide (free of charge) each association with a monthly report detailing the status of every account, amounts owed, collected, and next legal action to take place. LM Funding also requires the attorneys to answer, free of charge, any questions the manager or board members may have with regard to collections.

Will LM Funding purchase unpaid special assessments?

No. LM Funding is unable to fund against special assessments, water bills, fines or similar charges, as these charges are not protected by Florida’s “Super Lien”. These amounts will be invoiced, but their collection cannot be guaranteed.

LM Funding provides an association immediate funding to cover delinquent assessments by paying money directly to associations for unpaid assessments. LM Funding assumes all of the collection costs, relieving the association from collection expenses, and the burden of collection costs.

LM Funding pays the Association an amount up to 12 months of assessments or 1% of the original mortgage amount, whichever is less, up front and the full balance of past due assessments after it’s collected. LM Funding gives the association 100% of all the past due fees that they collect and always ensure the association is in a better position than they otherwise would have been using an attorney to try to collect.

*On average, 93% of past due fees have been collected and repaid to associations on accounts funded by LM Funding, a percentage significantly above industry averages.

LM funding purchases the interest and late fees collected on delinquent assessments for an amount up to the lesser of 1% of the first mortgage amount or the last 12 months of the delinquent assessments directly from an association in exchange for an assignment of association’s lien & collection rights. (Example: assuming a unit has a mortgage of $400,000, if the association has $300 monthly assessments, LM Funding will advance up to $3,600 ($300 x 12) for each delinquent account. After LM Funding successfully collects all unpaid Association assessments, LM Funding pays the Association the balance of all other unpaid assessments and charges collected.

LM Funding guarantees the association will never pay any collection related expenses, including all legal costs and attorney fees. Condo associations no longer have to incur legal related expenses to collect upon delinquent owners. If an owner does not pay the collection costs, LM Funding will pay on behalf of the association. We are not deferring the expense like some attorneys; we are ELIMINATING these expenses completely.

LM Funding retains all interest, late fees, & reimbursable collection expenses associated with the collection of unpaid assessments. LM Funding receives all of this directly from the unit owner or foreclosing mortgage holder. The association pays nothing out of pocket to LM Funding.

LM Funding will never compromise amounts owed to an association without the association’s consent. We will pay the lawyers to work the account until the association is satisfied, even after all amounts owed to LM Funding are collected.

LM Funding provides an association immediate capital to cover delinquent assessments and also provides an automatic mechanism for an association to ensure it will receive payment of future assessments.