THE ESSENTIALS

What is the basic process?

STEP 1 INFORMATION + DOCUMENTATION
Simply complete a Client Data Form and submit the required Association documents.

STEP 2 CONSULTATION
We review your documents and provide your Association with a free consultation.

STEP 3 AGREEMENT
Pending approval, your Association supplies the unit ledgers to ACR in order to complete the underwriting process, both parties sign a Service Agreement and the Association executes an Assignment of Delinquent Accounts.

STEP 4 FUNDING
ACR determines upfront funding amounts on a unit-by-unit basis and advances the total amount of capital to the Association within ten (10) days of finalizing the Funding Agreement.

STEP 5 ACCOUNT RECOVERY
ACR begins the process of recovering bad debt via comprehensive owner and property identification, personal and collaborative debtor outreach campaigns, credit bureau reporting, Asset & Risk Analysis and monthly status reporting, and if ultimately deemed necessary by the Association’s legal counsel in the pursuit of various forms of legal action.

 

UPFRONT FUNDING

How can ACR provide upfront funding to Associations, with no strings attached?

Our real estate, financial and collections expertise, diligence in pursuing all options available under Florida Safe Harbor statutes, and significant resources enable us to  provide Associations with upfront working capital, as well as take responsibility for collections-related legal expenses.

How does the upfront funding work?

In exchange for the assignment of the rights to collect delinquent assessments for Condominium Owner Associations, we advance capital to the Association for up to the lesser of 12-months of delinquent assessments, or 1% of the original mortgage, less a 5% funding fee. The total amount of upfront funding is therefore based on the number of assigned accounts, and the individual circumstances of each.

Initial funding amounts are transferred to the Association within ten (10) days of ACR having completed the Association’s document review and received the signed Service Agreement and Assignment of Delinquent Accounts.

On a case-by-case basis, ACR will also provide upfront funding on Homeowner Association accounts which have original mortgage loans formulated after to July 2007.

How does ACR go about collecting past-due assessments?

We recover bad debts through comprehensive owner and property identification, personal and collaborative debtor outreach campaigns, credit bureau reporting, Asset & Risk Analysis, monthly status reporting, and if ultimately deemed necessary, the pursuit of various forms of legal action.

What happens once ACR collects delinquent amounts?

Beyond the initial funding amount, all of the remaining assessments we collect are returned to the Association, payable within fourteen (14) days of collection.

How is ACR able to successfully recover delinquent assessments from accounts on which others have been unable to collect?

There are two fundamental reasons we are successful where others have been less so. First,  we take a thoughtfully-designed, personalized approach to resolving each individual delinquency. We utilize the most sophisticated tools available to track down accurate and current owner and property information, make personal, in-depth calls to understand the hows and whys of each homeowner’s delinquency, and take the time necessary to tailor recovery efforts accordingly.

Second, we are both proactive and aggressive in defending foreclosures. The sooner a foreclosure action is brought to a conclusion, the sooner a paying entity takes title to the real estate—so who is much less important than when.

 

SERVICE COSTS

How much does it cost the Association to engage ACR’s services?

Nothing. The Association never makes out-of-pocket payments to us for our funding and collection services. Once our highly-trained team collects delinquent assessments, we are compensated by keeping the late fees, interest and reimbursable expenses paid by the homeowner or lien holder. All remaining outstanding assessments we collect are returned to the Association, regardless of the amount.

Is the Association charged if ACR cannot collect on a delinquency?

Absolutely not. An Association will never write ACR a check for funding and collection services, regardless of the amount of assessments recovered and returned to the Association.

 

LEGAL MATTERS

How are ACR’s Association services different from those provided by attorneys?

Attorneys do not typically call debtors, though they will charge upfront costs to an Association for collection and lien filings, regardless of whether or not they successfully collect delinquent assessments. Additionally, Association attorneys are often passive in their efforts to defend foreclosures.

Our team conducts comprehensive debtor outreach campaigns designed to maximize collection effectiveness. We do not charge Associations any fees on funded accounts however, we cover all legal fees incurred in the collection process, and we aggressively pursue conclusions to foreclosure actions.

If an Association engages ACR, do they still need an attorney?

ACR will retain an attorney on behalf of the Association to handle any legal services related to collecting past due assessments on accounts assigned to ACR, and will take care of the legal fees required to do so.

For all other legal matters, the Association will need to retain its own legal counsel, and we also encourage the Association’s attorney(s) to review our Service and Collection Agreements.

What if an Association already has an attorney handling its collections?

We can and do work with attorneys who are in the process of pursuing delinquencies, helping to effectuate a more profitable result for the Association. We will review and consider all of the Association’s delinquencies, including those currently being pursued by others.