Since our last publication, we have launched our Web Portal allowing homeowners access to their accounts. Every month we bring more clients on board so if you haven’t been sent a password with your statement, you will soon! Once you have access, you are able to make a payment and view activity in real time, 24 hours a day. Our software provider is continuing his work to write the program for online check approval for our boards of directors. This will eliminate the time delays associated with mailing checks and obtaining signatures prior to disbursement to your vendors. Along with this feature will be a paperless function allowing CFM to attach invoice images to our vendor database for records retention. We are very excited about our continual advancements we have made since converting to new software last year. Stay tuned for more developments to come.
Sincerely, Linnea & Stacie
The Bank won’t foreclose…
Many of our Associations are experiencing significant delinquencies and bad debt write offs. Many collection efforts are stalled by the lenders who are unwilling to proceed with the foreclosure process. They don’t want upside down properties on their books so they choose to sit on the property while the owner gets to live there essentially for free. So what is an Association to do in this case? If the Association were to move forward with their own foreclosure, they could collect rents to cover assessments and use the leftover to start paying off the prior owner’s debt correct? WRONG! This would be considered rent skimming which is prohibited in Section 890 of the California Civil Code. I take exception to this law and wonder why the Association couldn’t work out an agreement with the lender on their own. For example, the Association forecloses which is good for the bank because the upside down property does not appear on their books. Then the Association rents it out and the lender agrees to split the rent in some amicable way. The mortgage is still not being paid but it wasn’t being paid before either. Then the lender can take all the time it needs before pursuing the foreclosure… but in the meantime the Association is getting paid and the lender is getting more than they would have been if the Association had not moved forward. Win-Win? Well, it beats the alternative. We will keep you posted on any developments that might help the Associations dealing with this crisis.
Stump the Experts
If you have a question regarding the financial management of your association, please send an e-mail to firstname.lastname@example.org. If your question is chosen, we will publish the information in our next newsletter.
See what our clients are saying about us…
‘…accurate accounting, prompt service, and continual professionalism…’
“Our experience with Condominium Financial Management has been one of professionalism and accuracy. They work as a team with our office to effectively reach the same goals. They protect our bottom line with their accurate accounting, prompt service, and continual professionalism. We value our relationship with them as an integral part of our company. ”
Janet Quinn Dennis
HOA Collections & Mediations
The Franklin Award
he Franklin Award is a company reward of a $100 bill given to one employee per quarter in recognition of an outstanding achievement or extraordinary task completion. They can be nominated by their fellow employees, by a homeowner, board member, or colleague. The Franklin Award winner for 1st quarter 2010 is Pam Ellert, our financial reporting specialist, in recognition of her outstanding service to the company. Pam is a model employee and we are lucky to have her!