Database Formed to Facilitate Communication Between HOAs and Servicers
Matt Martin Real Estate Management has created a database that connects servicers and investors with homeowners’ associations to collect unpaid association fees from a property owner who has defaulted or moved.
Because of the HOAs persistence to receive their dues frequently causes delays in the process to resell foreclosed and defaulted residential properties, Sperlonga Data and Analytics has been formed to bridge the gap between all the parties in order to facilitate the identification, delivery, and resolution of outstanding account balances related to association fees.
“After hearing again and again of homeowners’ associations creating issues at closing for parties wanting to buy and sell assets, it became evident that this problem was costing the industry tremendous amounts of time and money,” said Matt Martin, chairman of Sperlonga Data and Analytics based in Arlington, Va. “With no single source of reliable association data or standardization in place to manage this process, we saw an immediate opportunity to deliver a solution with real value for all parties.”
Without a previous way for servicers, investors and HOAs to contact one another, the unpaid association claims resulted in millions of dollars in losses annually for the mortgage industry.
“Our web portal empowers associations to quickly and easily submit demands to the right place and provide our servicing partners the ability to ensure timely payment,” Martin said. “Resales go much more smoothly when HOA liens aren’t popping up at closing.”
SDA provides a centralized repository for HOAs to list information such as unpaid HOA dues to enable contact and dialogue with lenders and other lien holders. Once a HOA makes a claim, SDA then directs this claim to the appropriate party for payment, usually a servicer, bank or other lending institution.
The purpose of the database is to help resolve HOA obligations before they can cause problems and even block property re-sales and dispositions.
“We regularly hear incredible stories of frustration from associations trying to submit demands,” Martin said. “We have heard many accounts of associations taking their claims down to the lender’s local bank branch to drop them off, which of course doesn’t work.”
Other features the SDA provides HOAs include foreclosure monitoring for any property owned by a specific association, servicer identification for who an HOA should contact, account document delivery for demand letters and payment collection from an investor or servicer.
Benefits for a servicer to use the SDA is that it provides association identification for specific portfolio properties, account document retrieval from community associations including the delivery of account statements and demand letters, payment negotiation to assess the fees and charges billed by an association to determine its fairness and delinquency monitoring.
There is no cost for HOAs, Condo Associations, and other types of community associations to register their communities into the database.
According to the Sperlonga website, the database is expected to launch at the end of this summer.