Financial help for troubled homeowner and condo associations.
Categories: Condo Communities, Foreclosures, Real Estate News
hiWhen a homeowner in an association or a condo owner stops paying monthly maintenance fees, the budget falls short and the remaining owners have to pick up the slack. When there are many owners who, due to foreclosure, have stopped paying their fees, the association has to ask the remaining owners to pay big special assessments to make up the difference. This is a problem for property owners. If there are too many non-payers, lenders are less likely to approve loans for prospective new owners. So people can’t sell and the situation just gets worse. I learned about a resource that can help. Association Financial Services is a new company that guarantees the cash flow of an association and also provides billing and accounting services. They will guarantee a monthly cash flow based on association fees in return for the eventual late fees and interest plus a service charge. Here’s a story that appeared in South Florida Business Journal. Here’s their website.
Just for the record, I have no financial interest in this company. I learned about it from Alex Moskovitz, the CFO, while we were both sweating away at the gym. You can reach Alex at 305-677-0022, ext. 803. Funny the stuff you can learn at the gym. Anyway, I thought that this sounded like a good service that people ought to know about and that could help property owners and associations.
If you’d like any information about real estate in South Florida, you can reach me at 305-401-8058 or bishopric.r@ewm.com.
