Your community association could save money by knowing more about why delinquencies occur. Then you can proactively resolve minor debt issues before they get out of hand. Equity Experts uses the TechCollect Hardship Calculator for accurate answers and reporting to make better decisions and customized debt collection processes.
If your association has outdated collection methods that end in immediate legal action, you are behind the times and exposing yourself to unnecessary liability. Today’s communities need to be efficient, using phone calls, texts, emails, and even social media direct messaging to reach homeowners about delinquent assessments immediately. Knowing which avenue is most effective can save time and money.
Strategic Debt Collection Partnerships
By partnering with TechCollect, Equity Experts uses data to notify homeowners earlier, so late fees don’t become an issue and to show compassion during a time of economic difficulty. This is an industry game-changer. Some owners do not live in their community association, or it’s not their primary residence. Many people ignore standard mail as it mostly contains advertisements. A proactive collections approach makes contact faster and outcomes more successful.
The Hardship Calculator also helps us refine our message for homeowners experiencing:
- Job loss
- Reduced pay
- Domestic issues such as divorce and child care
- Illness, disability, or caregiving
- Being called to Active Duty or Military Reserves
Over the next few months, your community association will need to develop comprehensive payment plan options. It should have agents available to educate and guide owners to resources for financial aid and support. We recommend updating collections policies that provide options. Equity Experts helps homeowners get back on their feet with:
- Mortgage assistance
- Education about the Cares Act Mortgage Forbearance
- Student loan and consumer finance support
- Credit debt relief
Along with significant financial challenges due to the pandemic, we know that some socio-economic groups are impacted by debt at much higher rates. Traditional collection methods used by the community association industry makes these problems much worse.
Research from TechCollect shows the average cost for a homeowner when faced with a lawsuit in foreclosure is typically around $2,500. If they are able to avoid legal action, it is closer to $500. Up to 60% of delinquent owners can resolve a past-due account without legal action if given options. An empathetic response and removing language barriers with bilingual agents can result in positive outcomes and lessen financial burdens.
We have the tools and resources available to your community association to update their best practices. You can offer transparency and compassion using Equity Experts’ RelEEf and The Hardship Calculator. Provide a level playing field for all association members and continue to meet the board’s fiduciary obligations to collect debt in a timely manner while avoiding liability from real or perceived discrimination.
Community association leaders need to have conversations and pursue a more thoughtful path to debt resolution. Processes that are especially hard on certain demographics are no longer acceptable.
Contact us to be sure legal action is only used as a last resort.