The Axela Blog

Condo & HOA Collections
Audacity 5

Playing The HOA – A Continuing Study in Audacity (Part V)

By Mitch Drimmer / 8 November, 2023

From Tax Deed Sale to HOA Victory: How to Recover Your Cash By Michael Jenner, MBA, as told to Mitchell Drimmer, CAM Background:  This case study involves a legal dispute regarding overages from tax deed sales of multiple undeveloped lots within an HOA in South Carolina. With the help of Axela Technologies’ collection partners, the Delinquent Tax Collector for Greenville County, South Carolina, was petitioned to reward surplus funds from the tax deed sales to the association to cover past due assessments owed by the lots sold.  Challenges Faced: Resolution: Lessons Learned: CASE NOT CLOSED (YET): The outcome of this case will depend on the court’s interpretation of the CC&Rs, the South Carolina Code, and whether the Plaintiff’s liens and claims for […]

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HOA four

Playing The HOA – A Continuing Study in Audacity (Part IV)

By Mitch Drimmer / 31 October, 2023

Condo Conundrum: How to Outsmart Lenders Playing the Game By Michael Jenner, MBA, as told to Mitchell Drimmer, CAM Background:  In this case study, we examine a situation involving a condominium association in Florida and its dispute over the application of the “Safe Harbor” provision concerning super liens for unpaid assessments owed by a unit owner. Technically speaking, Florida is not a “Super Lien State,” but the Florida statutes do have a way for the association to avoid a total write-off…read on to uncover the path to assessment recovery when a lender is playing games with the HOA. Parties Involved: Challenges Faced: Resolution: The statute further defines “successor or assignee” with respect to a First Mortgagee to only include a subsequent holder of the first […]

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transparency act

The Corporate Transparency Act and Your HOA/Condo…OY VEY.

By Mitch Drimmer / 20 October, 2023

By: Mitchell Drimmer, CAM President, Axela Technologies Starting next year, Community Associations (HOAs & Condos) in the U.S. will have to follow new rules. These rules are part of something called the Corporate Transparency Act (CTA). The CTA requires most Community Associations (HOAs & Condos) to share information about the people who own or control the association. This is called a beneficial ownership report. While some non-profit groups are exempt from this rule, most Community Associations (HOAs & Condos) are not. Community Associations (HOAs & Condos) are groups that take care of neighborhoods. There is a lot of money flowing in and out of these associations and many boards of directors and even their management companies are not quite ready for this process. There […]

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Audacty III

Playing The HOA – A Continuing Study in Audacity (Part III)

By Mitch Drimmer / 18 October, 2023

A complicated but ultimately absurd scheme by a real estate professional who thought they were the smartest game in town. By Michael Jenner, MBA, as told to Mitchell Drimmer, CAM Background: Mrs. Delinquent*, who owned a unit in an HOA in New Mexico, had stopped paying her mortgage and HOA dues. As a result, she was having her home foreclosed upon by a bank, and the HOA referred her file to Axela Technologies. The collection solution provided by Axela Technologies was working the file to recover the delinquent assessments from the owner in the amount of $17,000 while the bank was pursuing foreclosure on the property.  Somebody who had a real estate license and owned a real estate company had a […]

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Gmaing HOA 2

Playing The HOA – A Continuing Study in Audacity (Part II)

By Mitch Drimmer / 11 October, 2023

Challenge Accepted: Collecting Delinquent HOA Assessments from China for Condos in South Carolina By: Michael Jenner, MBA, as told to Mitchell Drimmer, CAM Background:  The association’s troubles began when a group of Chinese investors purchased properties within the condominium between 2014 and 2015. The developer of the community defaulted on agreements, leading to financial distress for the association. At least 75% of the units were owned by foreign investors residing in China, making communication and collections difficult. Axela’s Collection Solution started handling the association’s delinquencies in 2019, using demand letters, calls, and emails to reach out to owners. The developer offered fixed rental returns of 8% on the investment price but defaulted on the agreement and stopped paying the agreed rental income to […]

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HOA

Playing the HOA – A Continuing Study in Audacity (Part I)

By Guest Poster / 4 October, 2023

How to abuse the bankruptcy court and your HOA at the same time. By Michael Jenner, MBA, as told to Mitchell Drimmer, CAM Background:  This case study revolves around a homeowner’s association (HOA) located in the State of California dealing with a property owned by six individuals that has been plagued by chronic delinquency since 2008. The association embarked on a journey to recover the long-standing debt through non-judicial foreclosure. However, the owners resorted to a series of bankruptcy filings to delay and evade the sale, leading the HOA to uncover a history of repeat fraudulent bankruptcy filings. Challenges Faced: Resolution: The combination of the in-rem order, the granted relief from the automatic stay, and the association’s decision to bring in […]

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Why deferring

Why Deferring Common Area Repairs Could Cost You Thousands

By Mitch Drimmer / 19 September, 2023

By: Mitchell Drimmer, CAM As a homeowner, you want to ensure your property is well-maintained and secure. However, deferring maintenance of common areas could lead to increased expenses that cost your HOA thousands of dollars. In this article, we will explore the hidden costs that arise from deferred maintenance and provide practical tips on how to avoid them. From increased repair fees to legal expenses related to lawsuits, we will delve into the real-life consequences of delaying common area repairs. By the end of this article, you will have a clear understanding of why maintaining your common areas is crucial and how you can save your association from unnecessary expenses. Increased Repair Costs Due to Inflation It’s no secret that […]

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Finding compassionate

Finding Compassionate Solutions Over Foreclosure Threats in HOAs

By Mitch Drimmer / 5 September, 2023

By: Mitchell Drimmer, CAM Introduction: Homeowners Association (HOA) collections can be a stressful and daunting experience for homeowners who fall behind on their dues. Unfortunately, some HOAs resort to legal measures, leading to foreclosure threats, putting homeowners at risk of losing their cherished homes. However, a specialized collection agency that focuses on HOA collections can offer a more compassionate and understanding approach. In this article, we will explore the stark differences between attorneys who may pursue foreclosure and Axela Technologies who prioritize working with delinquent owners to find amicable solutions. When homeowners struggle to meet their HOA dues, traditional HOAs might seek legal assistance from attorneys to resolve the situation. Attorneys, driven by the legal process, often pursue foreclosure as the primary resolution. Foreclosure is […]

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Maintaining 2

Maintaining Your Reserve Study Will Save Your Condo and Possibly Your Life

By Mitch Drimmer / 14 August, 2023

By: Damian J Esparaza, CEP Smart Property It’s important that HOAs and condo associations maintain a healthy cash flow. That’s why delinquencies are such a heavy financial burden. But while your community has a budget you adhere to closely on the operating side, the capital expenditures side is rarely looked at as closely. In order to maintain a healthy cash flow, you need to make sure that your maintenance and replacement schedule stays on budget too. That’s where capital reserve planning comes in. Static Reserve Study Shortcomings You’ve heard it before, and you’ll hear it as long as you’re on the board: your community needs a reserve study to be successful. That’s only half true. The industry’s worst-kept secret is […]

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Even Condominiums need happy endings…It Could Happen

Even Condominiums need happy endings…It Could Happen. What

By Mitch Drimmer / 25 July, 2023

By Mitchell Drimmer, CAM, President, Axela-Technologies Once upon a time, nestled in the heart of a bustling city, there stood a vibrant condominium. This community, known as Mitchell Manor Condominium, had thrived for years with a strong sense of camaraderie among its residents. However, an unforeseen challenge lay on the horizon, casting a shadow of uncertainty over their peaceful abode. The residents of Mitchell Manor Condominium faced a mounting problem: delinquency payments due to inflation, special assessments, and increasing insurance costs. As dues went unpaid, the community’s financial stability began to waver, and its leadership knew that immediate action was necessary. It was during this time that Axela Technologies, a pioneering company specializing in innovative collection solutions for community association management, stepped forward […]

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What is Kaufman Language and Why is it Important to my HOA or Condo

What is Kaufman Language and Why is it Important to my HOA or Condo?

By Guest Poster / 5 July, 2023

B​y, Griffin Jordan, Licensed Florida Community Association Manager I​n November 2022, the North Carolina Supreme Court made a ruling that could impact all community associations. To summarize, the association got lucky that the court decided they were subject to foreclosurelaws passed after the Declaration was adopted because they were missing a crucial sentence that would have made the case much stronger. You can review the case in detail here, or you can keep reading for the takeaways that apply to your community association. The Language That You Need to Have in Your Declaration This phrase is not something new. In fact, the case it’s based on, Kaufman vs. Shere, was decided in 1977. But few seem to understand an important takeaway from that case. […]

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Collect Smarter Not Harder The Benefits of Leveraging Technology in HOA Collections

Collect Smarter, Not Harder: The Benefits of Leveraging Technology in HOA Collections

By Guest Poster / 20 June, 2023

by Patrick Hixson, Director of Sales Is your HOA struggling with collections? If so, you’re not alone. The traditional methods of collecting are time-consuming and inefficient. But what if there was a way to streamline the process and collect smarter, not harder? That’s where we enter the game. We are revolutionizing HOA collections with our cutting-edge API (Application Programming Interface) technology. In this article, we’ll dive into the benefits of using technology in HOA collections and how Axela Technologies is leading the way.  The Problem with Traditional HOA Collections “Old-school” HOA collections can be a headache for homeowners, management companies, and board members alike. Relying on your treasurer or management company staff to update ledgers, pull reports, and mail notices can lead to delayed […]

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Avoiding Discrimination Claims When Collecting Assessments

Avoiding Discrimination Claims When Collecting Assessments

By Mitch Drimmer / 6 June, 2023

by Dee Rowe, CCAM and Mitchell Drimmer, CAM Homeowners want to feel seen, heard, and secure in their community. But, when collecting assessments, HOAs can inadvertently create a discriminatory environment that leaves some members feeling left behind. In fact, discrimination claims are becoming more common in HOAs across the country, highlighting the need for transparent and fair policies that follow fair housing laws. In this article, we’ll explore best practices for avoiding discrimination claims when collecting assessments. By following these guidelines, boards can create a more inclusive community that values every member’s contribution. Understand the Fair Housing Act One way to ensure that your homeowners’ association is following fair housing laws is to have a solid understanding of the Fair Housing Act. […]

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fariy tale hero

The Start of the Fairy Tale: Creation of the Homeowner Assistance Fund

By Luis Gonzales / 27 March, 2023

by, Dee Rowe, CACM, Contributing Author Once upon a time, benevolent Prince Sanders was afraid that people would lose their homes because they were unable to pay their mortgages or HOA fees. You see, a nasty respiratory disease was ravaging the kingdom and all surrounding kingdoms. Workers not deemed essential were forced out of work to limit the spread of the disease. The price of essential goods and services skyrocketed. Even once a “return to work” was announced, for many business owners and employees there was no work to return to. The kingdom was in crisis. Since he was Chairman of the kingdom’s Senate Budget Committee, he and 11 others authored theAmerican Rescue Relief Act, which included a Homeowner Assistance Fund designed to keep those people […]

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Six ways HERO

6 Unexpected Ways an HOA Recovers Delinquent assessments.

By Guest Poster / 2 March, 2023

Money judgments are not an effective way for an HOA to collect delinquencies. It’s often more effective for an HOA to work with delinquent homeowners to find a mutually beneficial resolution. This may involve setting up a payment plan or finding alternative ways to resolve the delinquency.

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Why Money Judgments Don't Work for Assessment Collections

Why Money Judgments Don’t Work for Assessment

By Mitch Drimmer / 13 February, 2023

Money judgments are not an effective way for an HOA to collect delinquencies. It’s often more effective for an HOA to work with delinquent homeowners to find a mutually beneficial resolution. This may involve setting up a payment plan or finding alternative ways to resolve the delinquency.

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Is Your HOA or Condo Board Doing A Good Job?

Is Your HOA or Condo Board Doing A Good Job?

By Guest Poster / 23 January, 2023

The truth is, most Board members are honest people that meant well when they campaigned for election and mean well when they attend and vote in each meeting. They have reasons for making the unpopular decision that the residents complain about. Oftentimes those reasons are valid and the unpopular decision was actually the lesser of two evils. But, how do you know for sure?

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HOA Payment Plan

HOA Payment Plan Provisions to Protect Your Community

By Mitch Drimmer / 20 September, 2022

HOA delinquencies end in foreclosure too often. An HOA payment plan is an ethical option that can help communities get every penny they’re owed.

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How Does an HOA Collections Company Really Work?

How Does an HOA Collections Company Really Work?

By Mitch Drimmer / 26 July, 2022

Life is full of mysteries. The way an HOA collections company works doesn’t have to be one of them. Here are the ins and outs of industry-specific collections for HOAs and condos.

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predatory HOA collections

Signs You’re In an Abusive Relationship With a Predatory HOA Collections Company

By Mitch Drimmer / 15 July, 2022

The sad truth is that predatory HOA collections companies are out there. Are you stuck in a bad contract with one of them? Look for these signs.

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How To Settle a Debt with an HOA Collection Agency

How To Settle a Debt with an HOA Collection Agency

By Mitch Drimmer / 7 July, 2022

Being in debt is stressful, but somehow getting out of debt can feel even more so. Working with, not against, an HOA collection agency helps reduce that worry.

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Cost of HOA Collections

How Much Should Your Community Pay for HOA Collections?

By Mitch Drimmer / 2 June, 2022

Collecting from delinquent homeowners in your HOA or condo association can be expensive. But should it be? Exactly how much should your community be paying for HOA collections?

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Should you pay HOA Dues

What Happens When You Don’t Pay Your HOA Dues?

By Mitch Drimmer / 10 May, 2022

There are a lot of reason why it’s important to pay your condo or HOA dues. But sometimes life throws a curveball that makes managing finances difficult. Here’s what can happen if your HOA dues are the bill that goes unpaid.

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HOA Collections Agency

3 Reasons to Hire an HOA Collections Agency to Manage Your Delinquencies

By Mitch Drimmer / 26 April, 2022

Community associations don’t have a lot of options when it comes to collecting past-due assessments from delinquent homeowners. Here are 3 reasons why an HOA collections agency is the right choice for managing your delinquencies.

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outsourcing hoa bill collection3

This Isn’t Why You Volunteered to Serve on your HOA or Condominium Association Board!

By Bob Gourley / 9 March, 2022

You joined your HOA or condo board to make a difference, not to dive head first into the drama of HOA bill collection. Don’t shoulder that burden, let Axela do it for you.

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