We Have Changed Collecting Association Dues…
American Management Group LLC (“AMG”) will provide all of these collection services listed below to the Association at 100% no cost or fees. 100% of fees and costs will be collected only from the homeowner (based on the number of collection files, AMG may have to be reimbursed for our out of pocket foreclosure costs). If they are not recovered, the Association will not owe AMG or its affiliates any money at any time. We feel as the Association Management Company we have the most knowledge of the Association’s needs.
Also, we know immediately when all owners become delinquent. Therefore, we can start collections immediately on any delinquent homeowners. AMG will take over the entire collection process including all letters, liens and foreclosures. AMG will be the one-stop for all collection needs. There will be no need for any other Collection Company or Law Firm to contract with the Association. AMG will need to employ third party vendors to handle certain functions of collections. However, this will be at the sole cost of AMG; never the responsibility of the Association.
AMG staffs a collection manager for all of our Associations. This is in addition to many other collection callers, attorneys and office staff. However, this person’s role will be to know every single unit in collections and constantly deal with each unit on a daily basis. AMG will guarantee that 100% of this staff member’s time will be for Association collections. This staff member will work at a minimum of 40 hours per week. AMG will be paying for this staff member and all expenses associated with this new hire.
AMG will provide all of these additional services listed below at no cost to the Association.
1. AMG will send out the official demand letters as per Association Collection Policy within 48 hours of any homeowner becoming delinquent.
2. All letters will be pre-approved by the Board.
3. Letters will be mailed to all known addresses of the delinquent owner.
4. The Board will decide the schedule of which of the following letters to send and when –
- Friendly Reminder
- Secondary reminder
- Demand Letter
- Foreclosure warning letter
- Quarterly Statements
1. AMG will take a proactive approach to collections.
2. AMG will reach out weekly to ALL of the delinquent owners.
- Calls begin within 48 hours of a delinquent account being turned over to AMG.
- The Board will determine the call frequency.
3. AMG will perform skip tracing to attempt to find correct contact information on each owner that is not on Association Record.
4. All collection calls will be handled solely by this AMG staff member.
5. All calls will be handled within proper FDCPA guidelines.
LIENS & FORECLOSURES:
AMG will bare all responsibility of all cost and fees associated with the attorney. At no time will the Association be responsible for any fees or costs. This will include but not be limited to all court costs, all lien costs and all foreclosure costs (please note that if the Association is over 1000 units there are no foreclosure costs; if under 1000 units, the Association will only be responsible for out-of-pocket court costs)
and fees if they cannot be collected. This Firm will be on 100% contingency. Their fee will be in addition to what the Association is statutorily owed, NOT from what is collected.
1. AMG will confirm proper amounts owed to the Association.
2. AMG will account for all assessments, late fees, fines and interest calculations for payments received from delinquent owners.
DEMAND OF RENTS (If applicable):
1. For all delinquent properties that are rented, AMG will facilitate the collections of monies as per the Florida Statute.
2. AMG will prepare notices for the Demand of Rents to the owner and tenant.
- When necessary, AMG will facilitate the eviction process.
ASSOCIATION COLLECTION POLICY:
1. AMG will assist and consult with the Board in making sure a proper Collection Standard Operating Procedure (“SOP”) is in place.
2. AMG will strictly follow the SOP.
1. AMG will monitor, review and prepare all collection reports for the Association.
2. AMG will provide the following reports to the Board –
- A Public Records Report:
- All Association and Bank actions to-date; including foreclosure filings, letters, final judgments, sale dates, etc.…
- Identifies the accurate title holder.
- Balance due by owner.
- Occupancy of unit (owner, renter, vacant)
- A Note Report: Includes all communications and activities that have occurred by unit –
- Phone conversations
- Negotiation details
- Payment Plans
- Skip tracing activity
- Letters mailed
- A Financial Report –
- Detailed breakdown of all monies collected by AMG.
- Breakdown of the monies received will be per Association by property.
AMG will be in charge of ALL closings of ALL files:
1. Before a delinquent file is closed, AMG will coordinate the entire process between the Board and the legal team.
2. AMG will conduct a final financial review before the file is deemed current.
3. All amounts will be approved by AMG and the Board prior to closing the file.
4. Part of AMG responsibilities will be to handle all short sales. AMG will be the sole point of contact to all the parties in this transaction to include; buyer, seller, real estate brokers, attorney, title company, mortgage broker, etc.