Welcome to the spring edition of our company newsletter. 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...
NOW WHAT????
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 stacied@condofinancial.com. If your question is chosen, we will
publish the information in our next newsletter.
Franklin Award Recipient
The 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!
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
Owner
Pro Solutions
HOA Collections & Mediations
To read more client testimonials, click here
Suggestions?
If there is a topic you would like addressed in a future newsletter, please send
an e-mail to: stacied@condofinancial.com