Arlington, Virginia-based Sperlonga Data and Analytics is providing a solution that is now in use by a Georgia bank and a Georgia homeowners association (HOA) management company that share a common business problem. Action Community Management of Hiram, Georgia, contacted Sperlonga for help with several delinquent HOA accounts on properties that were either going through foreclosure or were already owned by banks. Sperlonga contacted the servicer on three of the properties, a Mississippi-based bank with an REO office in Georgia, only about 50 miles away from Hiram.
Sperlonga, a subsidiary of national asset firm MMREM, is a resource for HOAs, their management companies, investors and servicers that are struggling to deal with unpaid homeowners association claims.
Delinquent HOA accounts are commonplace on foreclosed properties and it is very often difficult for loan servicers to determine if a HOA is attached to a foreclosed property, leading to complications when defaulting mortgages turn into owned real estate (REO). At the same time, associations and HOA management companies have no reliable way of knowing where and how to submit their claims for payment, due to a longstanding communication gap that Sperlonga says it now bridges.
“They were close on the map but neither knew the other existed,” says Brent Stokes, senior vice president of Sperlonga. “HOA account obligations have become a premier issue for servicers. 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.”
When HOA claims are unpaid, communities suffer, and so do investors and servicers.
“In some states, first lien positions are threatened and it becomes far more difficult for properties to be sold until HOA claims are satisfied,” Stokes said. “We work with both the servicers and the HOA community to bridge the communication gap and get these problems solved.”
“We were very pleased with how fast and simple the accounts were brought current,” said Jeff Hope of Action Community Management, Hiram, GA. “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."