Typically LM Funding pays the “safe harbor” amount up front and covers all legal fees and costs. LM Funding retains collected interest and late fees and the association receives all recovered assessments. This product typically best suits condos and HOA’s with significant cash flow needs, who want to collect as much of the past due amounts as possible, eliminate legal fees and are less sensitive about the time element of the collection process.
Once the contract is final LM Funding pays dues for all delinquent accounts on a current basis in exchange for assignment of all of the associations past due accounts receivable. This works best for Condo’s and HOA’s with large delinquent balances and or a high percentage of delinquent units that want to guarantee revenues in their current and future budgets.
Generally LM will pay safe harbor amount on all delinquent units, we will cover all legal expenses and fees, and completely eliminate the risk, expense, and time element of collection matters. Upon collection LM recovers its funding amount and legal expenses, the remainder of the proceeds are shared equally with the association.