Most financial experts believe US households had between $2-3 Trillion in excess savings at the end of 2021. That is TRILLIONS with a T! Those same experts believe that the amount has been reduced by 50% as of the end of 2022, and that those savings would be depleted by the middle of 2023. That is a lot of money to burn through in 18 months.
The good news for HOAs is that households have been able to stay on top of their assessments. Delinquencies have not been much of a problem in recent years, but that is changing. Savings are being depleted and we are likely in a recession or entering one soon.
What are you doing to prepare your communities for increased delinquencies? If your answer is “nothing” or referring them to their attorney, I encourage you to consult someone in our industry that worked through the Great Recession. We had a severe problem with delinquencies 10 short years ago, and the cost of legal services for collections is hard to justify when times are tight.
Hopefully, we will never experience that kind of fallout again, but the cyclical nature of our economy says we will have more delinquencies soon. When that happens, paying legal fees for collections on top of lost revenue is not a sound fiduciary strategy. Even communities that can “afford it” should not take on that extra burden.
Do not wait for the problem to appear before you look for a solution. Plan now and you will be ahead the problem with our unique solution (deferred fees), recovering 100% of your delinquencies at no out-of-pocket costs for liens, foreclosures, and filing fees.
Review this short video to understand our process. As a fiduciary, the benefits could not be clearer for communities, CAMs, and attorneys.