Frequently Asked Questions
Funding Agreement
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.
- The Following a list of answers to frequently asked questions:
Q: Is my condominium association eligible for relief from Foreclosure Solutions?
A: Foreclosure Solutions will offer free consultations to any and all Florida condominium associations in need of financial relief. Generally, we ask that the association has at least 15 units and/or an overall 5% unit owner delinquency.
Q: What is the minimum amount of delinquency that Foreclosure Solutions will assume?
A: Foreclosure Solutions typically offers $20,000 in minimum funding to a Condominium Association. However, each property’s situation is unique and will be considered.
Q: What is the maximum funding Foreclosure Solutions is willing to provide to my Condominium Association?
A: There is no maximum limit set on funding plans from Foreclosure Solutions. Foreclosure Solutions is a solvent company and actually prefers scenarios that include a large dollar delinquency and numerous delinquent unit owners.
Q: What is the maximum per condo assessment delinquency that Foreclosure Solutions is willing to assume?
A: There is no maximum dollar amount assessed on a per condo unit basis, however Foreclosure Solutions will only fund up to six (6) months of delinquent assessments per unit in a Condominium Association.
Q: What’s in it for Foreclosure Solutions, how do you profit from this arrangement?
A: Foreclosure Solutions makes money from the interest and late charges it is assuming from the delinquent unit owners that it is able to collect from. Foreclosure Solutions provides immediate relief and profits from the long term collection, late fees and interest.
Q: Our Condominium Association is still in the Developer stages, and the Developer still owns several units. Not only is the Developer delinquent on the units it owns, but also on contributions to the Condominium project. Will Foreclosure Solutions fund these delinquent assessments as well?
A: Yes and no. Foreclosure Solutions can and will fund delinquent assessments from the Developer only after the Developer has relinquished control of the Association to the unit owners. During the developer controlled stages, Foreclosure Solutions will only fund units that are NOT Developer owned or controlled.
Q: Aside from Developer Controlled units, are there any other disqualifiers from the funding process?
A: Below is a comprehensive list of situations in which Foreclosure Solutions will and will not provide funding:
-Foreclosure Solutions Will Provide Funding To Units:
Speculator Owned / Vacant Units
Speculator Owned / Leased Units
Owner Occupied Units
Foreclosed / Lender Owned Units
*Lis Pendens Units (assessed on a case by case basis)
*Special Assessments (assessed on a case by case basis)
-Foreclosure Solutions Will Not Provide Funding To Units:
Speculator owned in Bankruptcy
Owner occupied in Bankruptcy
Pending Litigation with Owner or Association
Delinquent Owner is Board of Director Member
Q: Assuming my Association meets the necessary criteria for Foreclosure Solutions to provide funding, how do we move forward with this arrangement?
A: Foreclosure Solutions will first perform due diligence on the Association, reviewing the Association’s documents, by-laws, articles of incorporation, management agreements, financial statements, any pending or prior litigation notices and any other documents or history that is materially relevant to the collection or funding process. Furthermore, this Agreement usually requires the vote and approval of the Association’s Board of Directors
Q: How does the process work?
A: Upon execution of the Funding Purchase Agreement, Foreclosure Solutions will advance to the Association no less than 80% of the amount of up to 6 months of delinquent assessments on eligible units. The Association in exchange assigns all legal rights of collection of these Assessments to Foreclosure Solutions. The Association guarantees Foreclosure Solutions back the initial investment plus any late fees, interests, attorney’s fees and collections costs associated with the collection of this debt once the delinquent assessment is recovered.
Q: What is the cost to the Association?
A: The Association does not pay any retainer or any per condo service fee in the arrangement with Foreclosure Solutions. The Association simply assigns the legal right of the collection of the delinquent assessments to Foreclosure Solutions who will also collect late fees, interests, attorney and court costs from the delinquent owner.
