Our approach is simple. We’re going to right wrongs-we’re going to make sure you’re not left holding the bag for something that shouldn’t be your responsibility. “We buy problems,” is our way of saying you shouldn’t have to pay association fees for those who fail to live up to their responsibilities. So we came up with a straightforward solution to delinquency that works, and even offers less risk.


With us, things happen fast. Instead of waiting for expensive collection attorneys to return a small portion of your unpaid dues, LM Funding gives funds directly to your association – immediate capital that allows you to pay bills and operate your business without getting involved in the hassles of collection. LM Funding will even guaranty your association will receive its budgeted revenues on a current basis going forward. We will also work with your association’s lender to guaranty payment of your loan.

Rather than charging for our time as collection attorneys do, LM Funding earns its money by aggressively managing the collection process for you, and only when purchased delinquent accounts are successfully collected. You give us the right to collect the debt, and we manage that process so you don’t have to. However, we are not a law firm or a collection agency. To collect the money you’re owed, we employ law firms that specialize in collection and works directly for you.

Your association pays nothing out of pocket to LM Funding, and we pay all legal fees and costs on behalf of the Association. You never pay anything. Period! Moreover, LM Funding assumes all risks associated with collecting delinquent assessments. Even in the unusual event we were somehow unsuccessful in collecting the delinquent assessments, your association will never have a legal bill and the association gets to keep all of the money.


What is LM Funding, and where is it based?

Based in Tampa, Florida, LM Funding is publicly traded on the NASDAQ Capital Market, (NASDAQ: LMFA).

LM Funding sounds like a law firm that offers collection services. Is this correct?

No. LM Funding is not a law firm. We offer a variety of financial products customized for each to provide cash to community associations to relieve problems caused by owners who fail to pay their association dues.

How quickly can LM Funding provide money to an Association?

Once an association signs an LM Funding Purchase Agreement and provides us with its accounting and due diligence information, we can normally fund within 5 days.

Will LM Funding take all units or do they hand pick only the ones they want?

We will accept all accounts that are delinquent. This includes the really old ones and the newest ones. LM Funding will present a collection plan and financial options for each delinquent account. It is up to the association to pick the product and collection plan that suits its needs

What if an association has some delinquency issues, but not enough to affect its ability to pay bills?

LM Funding would still be appropriate. Carrying any amount of bad debt is never ideal, especially when LM Funding can provide no obligation cash and free collection services. Plus, associations that have some delinquent assessments are likely to have more and more. The sooner we get involved; the sooner delinquency issues can be controlled. Having an agreement in place with LM Funding ensures an association’s cash flow will not be interrupted by a catastrophe, such as a hurricane or fire.

What if our delinquency problem continues to grow?

LM Funding is like a free insurance policy. It costs an association nothing out of pocket to sign up and it’s an immediate way to manage collections going forward. For example, if next month 3 unit owners don’t pay their dues, instead of having to go after the delinquent owners themselves, the association simply gives LM Funding the accounts. LM will provide a check to fund the maintenance fees and then manage the collection process for the Association until the collection is completed.

Our association was recently constructed (or converted). Some of its units are still owned by the developer who is guaranteeing their portion of association expenses. Does LM Funding cover this?

LM Funding will fund against the units the developer has sold. LM Funding cannot fund against developer-owned units while the developer is guaranteeing Association’s expenses, or fund against developer-owned units while the developer controls the association’s board. LM Funding will consider funding against developer-owned units only after the developer has relinquished total control of the association and is no longer guaranteeing assessments.

How much money can LM Funding provide to a condo association?

LM Funding has no maximum funding amount. LM Funding offers a variety of financial products from which an association can choose to meet its budgetary needs.

Does the association have to repay LM Funding for money funded if LM Funding is unsuccessful in collecting the debt from condo owners?

No. LM Funding assumes all risks associated with collecting delinquent assessments and in the event we are unsuccessful in collecting the assessments funded to the Association, the Association has no financial obligation to LM Funding. In no event will the Association ever have to write LM Funding a check for any amount.

Is the association liable for any of LM Funding’s costs and expenses to re-collect assessments?

No. LM Funding will not only pay for all of the legal costs of pursuing delinquent assessments, but will also do all the work. Associations no longer need to retain attorneys or deal with this process…LM Funding will handle all of these headaches for you.

How does an association enter into an LM Funding agreement? Does it require owners’ meeting and vote?

Once an association submits the online questionnaire, LM Funding will prepare a Funding Estimate. If the association is interested, LM Funding will then provide its standard Purchase Agreement for review by the board. Usually only board approval is required. Once the Purchase Agreement is signed, the association sends ledgers of accounts it wishes to sell to LM Funding. LM Funding hires a title company to review the accounts and prepares a Schedule of Assignments, which simply lists the accounts and amounts funded. The association and LM Funding execute the Schedule of Assignments and LM Funding pays the association.

What if a third-party professional management company or CAM already is managing our association?

LM Funding works with professional management companies and self-managed properties. LM Funding is not an Association manager, even though many of our account executives carry CAM licenses. Our business is designed solely to support the existing Association management by providing them working capital and engaging law firms to collect delinquent assessments. LM Funding and its attorneys coordinate collection efforts with the management companies and their accounting staff. LM Funding can integrate with all major association accounting software platforms and can create required “bride” programs to limit the amount of work required by a management company.

What is LM Funding’s protocol for treating condo owners in regards to late payments, assessing interest, and fees, filing claim of liens, and taking foreclosure actions against condo owners?

LM Funding engages attorneys to enforce all rights provided to the association by its declaration, by-laws, and Florida Statutes, which dictate the necessary notices required to collect. LM Funding requires that attorneys be firm but respectful in their efforts to collect delinquent accounts. All communication with owners is done in writing to ensure the accuracy of communications. If an owner has a willingness and ability to pay assessments on a current basis, a payment plan will be offered where the entire outstanding balance can be recovered in approximately twelve (12) months.

Do we have to sell you all delinquent accounts?

No. Associations are not obligated to sell any specific accounts to LM Funding if they don’t wish to sell them.

Will LM Funding fund accounts that are already being handled by an association attorney or already in lien or the foreclosure process?

Yes. LM Funding will assist with the turnover of files from the previous attorney and fund and collect on all of the accounts in lien or in the foreclosure process, as long as the Association has not taken title to the unit.

As a property manager, I earn fees for assisting in collection efforts for file preparation, estoppels letters and other tasks. Will selling delinquent accounts to LM Funding affect these, and how will I know what is going on with regards to collection efforts?

No. To the extents fees, such as estoppels fees, earned by a management company apply to the collection of LM Funding accounts, they will be invoiced and collected. LM Funding requires the attorneys to provide (free of charge) each association with a monthly report detailing the status of every account, amounts owed, collected, and next legal action to take place. LM Funding also requires the attorneys to answer, free of charge, any questions the manager or board members may have with regard to collections.

Will LM Funding purchase unpaid special assessments?

No. In general, LM Funding is unable to fund against special assessments, water bills, fines or similar charges. These amounts will be invoiced, but their collection cannot be guaranteed.

LM Funding successfully monetized several of our units after Business Law Group foreclosed on them. Their expertise and additional resources were instrumental in making this happen. Now we have the pleasure of making improvements to the community with our new found money.

Association Board President

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