HOA Management Company and Bank Resolve Unpaid Claims Through Sperlonga

A Georgia bank and nearby homeowners association management company have resolved five months worth of unpaid homeowners association claims with the help of Sperlonga Data & Analytics.

Sperlonga, a subsidiary of the national asset firm Matt Martin Real Estate Management, is a database that connects associations and their delinquent HOA account claims with the right point of contact at the correct loan servicer. The solution assists stakeholders in minimizing losses associated with transaction delays and lost revenues caused by HOA claims.

The purpose of the solution is to help resolve HOA obligations before they cause problems and even block property resales and dispositions.

In this instance, Action Community Management, Hiram, Ga., contacted Sperlonga for help with several delinquent HOA accounts on properties that were either going through foreclosure or were already REO.

Sperlonga was able to find and contact the servicer, which ended up being a Mississippi-based bank that has an office in Georgia about 50 miles from the HOA.

“They were so close on the map but neither knew the other existed,” said Brent Stokes, senior vice president of Arlington, Va.-based Sperlonga Data & Analytics.

Once the database retrieved which bank failed to pay Action Community Management's HOA claims, the financial institution sent their payments immediately for the outstanding HOA obligations. Before any reimbursements were made, the financial institution was already faced with late HOA payments, late fees, interest and penalties until the REO assets are sold.

“We were pleased with how fast and simple the accounts were brought current,” said Jeff Hope, president and owner of Action Community Management.

“We had been trying to find the right contact for months and Sperlonga both identified the servicer and made contact within 48 hours. A short time later, we received payment and established a billing relationship that will be maintained as long as the bank owns properties in the associations we manage. This service will help thousands of HOAs across the country.”

When financial institutions and servicers fail to pay HOA claims, this affects entire communities as well as investors and servicers. Because of its vast impact on so many people, Sperlonga also offers a monitoring capability that alerts servicers when HOA obligations go delinquent.

“There are millions of properties out there that have HOAs attached to them, and many of the associations and their management companies are unable to connect efficiently with the corresponding loan servicer to get their claims paid,” Stokes added. “In some states, first-lien positions are threatened and it becomes far more difficult for properties to be sold until HOA claims are satisfied. We work with both the servicers and the HOA community to bridge the communication gap and get these problems solved.”