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Be Prepared: How to Avoid the Super-Priority Trap

Benjamin Franklin once said, “By failing to prepare, you prepare to fail.” Servicers can face significant obstacles in preservation of their rights vis a vis assessments by homeowners’ associations and condo associations (a “property association”). The most important action servicers

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Now Might be a Good Time for an Association Loan

Interest rates have never been better. As a result, many owners have jumped at the chance to refinance their homes or condos at seriously low rates. Yet, individual owners are not the only ones who can benefit from these low

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How Mortgage Servicers Can Prevent Liens From Cutting into Investor Profits

For some time there have been questions surrounding how servicers can protect the lien rights of their investors with regard to the lien position of Homeowner Association properties, but there are ways to avoid this conflict.   Read the article……………

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Should Your HOA Take Out a Loan?

What do you do if your homeowners association board is planning a big project but doesn’t have information saved in the reserves or operating budget for the entire cost? There are a few different options. You can collect special assessments,

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Why a Loan is (Sometimes) a Good Idea for Your Homeowners Association

Your association board is planning for the big project on the horizon, and is currently reviewing how to finance it. For several reasons, you don’t believe you’ll have enough funds in the association’s operating budget or reserves to cover the

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Receiving a Lender Project Questionnaire

There is nothing quite as daunting for a community association board member or manager as a Lender Project Questionnaire, sometimes also referred to as a condo questionnaire or a PUD questionnaire, finding its way to your desk. As your trusted

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How To Bulletproof Your Association’s Biggest Asset: The Money (Pts. 1-4)

If you are elected treasurer of your community association and accept the challenge, there are many policies and procedures you will need to learn before you start planning budgets, collecting assessments, and signing checks. Board members and officers of all community

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Choosing the Right Bank – do you know their Safe and Sound rating?

When you are responsible for managing the money of other people, you are entrusted with more than just the earning potential of that money. The word “management” by definition encompasses handling, direction, and control. Choosing the right institution to aid

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ACH: The HOA & Automated Clearing House Transactions

If you ever get the good fortune of working at a bank you will quickly learn that banking has more acronyms than the United States Military. Every once in a while these bank acronyms seep out into the mass public

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What is CDARS?

With the recent stress in the financial market, many boards and property management companies are beginning to closely monitor the insurance of their funds. For many years now, leaders in the HOA banking and auditing industry have stressed the importance

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Effective and efficient cash management

Board members have the fiduciary responsibility not only to monitor the income and expenses of their association but also to utilize processes that provide both safety for assessments collected from homeowners and control of costs. If your community association or

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Now is The Time – Check Today’s Financing Options for Projects

If you’re on a board in a New England condo or HOA, now is the time that you should be talking about making any of the major improvements that you’ve discussed or considered over the past few years. Even if

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Funding for Homeowner Association HOA Capital Improvement Projects. What are the choices?

For the vast majority of Homeowner Associations HOA in America, capital improvement needs nearly always outpace the financial resources available to fund such projects. For many, Capital Improvements, Reserve Studies, Reserve Allocations, Annual Assessment Increases, and Special Assessments all send

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Protecting Lenders Making Condominium Development Financing

Financing condominium development involves a great deal of risk as a result of the nature of a condominium and the government’s involvement in the process of creating, selling and, sometimes, operating residential condominiums. The due diligence prior to making the

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Borrowing for Major Repairs

A typical lender when approached for a loan by an association will think in terms of tangible collateral for the loan, i.e. a lien on the common areas, liens on the individual units or personal guarantees for the loan by

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Bank Loan? Reserves? Special Assessment? Community Associations Should Consider their Options

A decade ago, most condominium associations would not have considered applying for a bank loan, and a good thing – because they would have been hard-pressed to find a bank willing to make one. Today, associations will find that banks

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As legal persons, banks enjoy the benefits AND the responsibilities of persons

In the last few years, we have seen more and more banks acquire title to condo and HOA property after foreclosure. Florida statutes provide that legal title passes upon the recording of the certificate of title. I am not going

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