The Problem
Osprey Cove was owed more than $200,000 in delinquent dues, and had already spent thousands in attorney fees when they contacted LM Funding. With 60 delinquent units, the association was having difficulty meeting its financial obligations.
Immediate Relief
LM Funding immediately gave the association a much needed cash infusion, and began managing the process of collections by hiring Business Law Group to initiate speedy collection and manage the legal complexities of collections in Florida.
Continued Collection Success
As of December 2011, LM Funding has recovered over $247,000 on behalf of the association, collecting from 45 of the original 60 delinquent units. LM Funding also paid all the legal fees the association would have incurred. Osprey Cove has recovered over 94% of overdue fees, and saved more than $80,000 in legal fees. Compared to the statutory amounts of either 12 months maintenance fees or 1% of the mortgage amount, amounts collected through LM Funding represent over 375% more in collected fees. Put simply, Osprey Cove received $182,000 more by hiring LM Funding than by using a condo collection attorney.
The Problem
Bermuda Dunes condo association was in a tough situation. With mounting attorney’s bills and approximately 118 units not paying dues, it was becoming increasingly difficult for the association to balance their budget.
Immediate Relief
LM Funding gave them $158,684.14 up-front, and hired Business Law Group to collect on the association’s behalf. Even before collecting, LM Funding paid Business Law Group’s bills in full. The association didn’t have to pay out of pocket for collection. LM Funding paid approximately $77,737.61 in legal fees that the association would have otherwise incurred.
Continued Collection Success
Thanks to the collection efforts made possible by LM Funding, a third of the units that were delinquent were paid off within the first year.
Bermuda Dunes has recovered $414,067.52 — 92% of payments that were past due. Before LM Funding got involved, Bermuda Dunes had to write off almost this entire amount as uncollectable.
Because of LM Funding’s success, Bermuda Dune’s 2011 legal budget was reduced by 97%, with no money earmarked for collections. In 2012, Bermuda Dunes anticipates additional collections of approximately $350,000.00 on units that remain in delinquency.
The Problem
The Village at Town Park was in the midst of what condo experts call “the condo death spiral”. Over 60% of the property’s 272 units were not paying condo fees, the property and had fallen into a great state of disrepair, and did not meet Fannie-Mae financing guidelines. With over $1,045,000 in outstanding maintenance fees and assessments, the challenge seemed insurmountable.
Immediate Relief
LM Funding was engaged to partner with the association to collect outstanding maintenance fees, and with a great Board of Directors willing to put in the time and effort, they got the situation under control. LM Funding advanced the association over $156,000, and engaged Business Law Group to collect on behalf of the association.
Continued Collection Success
With the assistance of LM Funding, The Village at Town Park recovered 56 units (over 90 days delinquent with overdue fees due totaling over $438,000) of the original 131. LM Funding has collected over $408,000, while paying another $67,000 in legal fees on behalf of the association. With a collection rate of almost 93%, the association was able to repave the parking lot, replant the grounds, and add new furniture and fixtures to the clubhouse. Most importantly, the association now qualifies for Fannie-Mae financing and boasts zero units for sale.
