Any used/opinions on LM Funding of Tampa

Started by EmilyB2 • 8 replies • 2763 views

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EmilyB2 (Arizona)
Posts: 40

Posted:

I found this company that isn't a collection agency and isn't the typical by your debt company. They work with HOAs in several ways to pay the HOA for bad debt and collect past dues/fees/interest etc. From what I read in news stories about them it sounds good, but I wanted to get other's opinions here if anyone worked with them or any company similar.

MelissaP1 (Alabama)
Posts: 13,836

Posted:

Bad idea. Clue #1 it sounds too good to be true. The best remedy for a HOA is to file a lien against properties who owe back dues. Have a lien policy such as 6 months behind we place a lien unless payment arrangements made. After a year and depending greatly on the situation talk about pursuing foreclosure.

It is not a good idea to file a lawsuit to collect and many official collection agencies do not pursue these types of debts. It is just patience, time, and lien. There is no 100% collection method that guarantees to ever get the money owed.

Former HOA President

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Quote:

Posted By EmilyB2 on 03/28/2013 8:46 AM
I found this company that isn't a collection agency and isn't the typical by your debt company. They work with HOAs in several ways to pay the HOA for bad debt and collect past dues/fees/interest etc. From what I read in news stories about them it sounds good, but I wanted to get other's opinions here if anyone worked with them or any company similar.

Emily

I would have to know more. We use a law firm that has an HOA division and one of its functions is past dues collection , lien filing, foreclosures. I think it would be fine you to name them as you are not plugging them.

EmilyB2 (Arizona)
Posts: 40

Posted:

I'm sorry. I named it in the title. I should have named it in the post as well.

It is LM Funding in Tampa. They have a website: http://www.lmfunding.com/

LarryB13 (Arizona)
Posts: 4,099

Posted:

Emily,

A few words of caution:

Condo boards are made up mostly of ordinary people without much experience with business, law, finance, or management. They are sitting ducks waiting to be preyed upon by those who are more sophisticated and aggressive. Keep your eyes wide open when dealing with any sort of collector.

The big red flag I saw on their website is that what they will pay is the lesser of 12 months of delinquent assessments or 1 percent of the original mortgage amount on the condo. If your fees are $500 per month and a year past due, then in theory the funding company would pay $6,000. But if the original mortgage amount was $100,000 then they will pay only $1,000. That's a pretty steep loss.

One unanswered question is what happens going forward? Once you have sold your interest in the delinquency, who has the right to collect any delinquent amounts that accrue after that? At what point, if ever, does your association resume the right to collect its assessments?

You would be wise to thoroughly research this outfit before doing business with them.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

I did a quick read of the site and all that kept hitting me was this sounds to good to be true and when that happens, my BS detector goes off.

Larry did a more in depth read and I trust his views. If he is correct on they would only pay 1% of the mortgage that could be a steep loss for the association. In our HOA 1% (assuming full mortgages) typically be about 1/2 (6 months) of our yearly dues.

Also his question on if the association accepts a specific amount but the losses (unpaid dues) keep growing to the association what good is that? The associations losses keep growing and they lost the ability to collect part, if not all of it.

I might have a discussion with them but I would go into it with my underwear on real, real, real tight for fear of being scammed out of it.

EmilyB2 (Arizona)
Posts: 40

Posted:

Thank you for all the comments. I believe we are going to try to handle things on our own. They seem to be doing what we can do on our own anyway but we just haven't acted enough to collect.

Also, thanks for all the warnings.

SeanG (Florida)
Posts: 1

Posted:

Emily: It has been a year now so I am wondering how things have worked out for your association and how much dues they have collected? I read the posts and there was some good information and what I thought was misinformation or at the very least opinion's and not facts. Any feedback would be great! Thanks

TimB4 (Tennessee)
Posts: 21,059

Posted:

Emilys' post counter is at zero. This is typically an indication that the individual has withdrawn their membership from the forum.

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