FAQ Help
This page provides general answers to commonly encountered questions pertaining to Foreclosure Solutions and the funding agreement concept. It is certain that a large number of questions tend to appear fairly regularly. This document (the FAQ) attempts to summarize answers to these questions.
Note: Each association has its own independent structure and unique financial situation, therefore the terms of the final agreement may vary depending on such factors.
Frequently Asked Questions
Q: We already have an attorney, so what is the benefit to our Association when hiring Foreclosure Solutions?
A: Attorneys charge you for their time involved in filing liens and pursuing foreclosures on behalf of the Association. Generally, the "meter" is running the entire time it takes the Association to either take title or until the bank forecloses on the principal mortgage. The time it takes to receive actual funds and recoup your losses could be close to three years. When hiring Foreclosure Solutions, we provide you with the funds up-front, eliminating the waiting game. Also, we earn our money by aggressively pursuing the past due assessments from the individual unit owner, third party buyers and/or the bank, NOT the Association.
Q: How does Foreclosure Solutions make a profit?
A: In exchange for providing immediate funding to the Association, Foreclosure Solutions buys the right to collect the past due assessments and any late fees and interest associated with each account. Once we recoup the initial assessments that were funded, any additional assessments recouped go straight to the Association. Simply put, we earn our money from the late fees and interests, NOT from the Association.
Q: What if Foreclosure Solutions is able to collect more of the assessments than it provided to our community?
A: That's the great part for the Association, in many cases Foreclosure Solutions has been successful in collecting assessment amounts that exceed the twelve (12) months or one percent (1%) that the banks are required to pay by law. In those cases, after the initial investment and late fees are recouped, the remainder is passed on to the Association.
Q: How does Foreclosure Solutions determine the amount of money it will provide to our Association?
A: Under current Statute, a financial institution that forecloses on a unit is required to pay the lesser of up to twelve (12) months of past due assessments or one percent (1%) of the principal mortgage. Once an Agreement is in place, each delinquent account is analyzed and a purchase price is presented to the Association Board of Directors.
Q: What if additional units become delinquent after we have already received funding from Foreclosure Solutions?
A: Fear not, our offer to your Association is not a onetime ordeal. Foreclosure Solutions' liquidity allows for continuous funding to the Association in the event that additional units become past due on their assessments.
Q: What is the maximum dollar amount Foreclosure Solutions would be willing to lend our Community?
A: That depends on the number of delinquent accounts and the dollar amount attached to each individual delinquent unit owner. However, there is no maximum cap on the funds we would be willing to provide to the Association.