Dallas-based Wingspan Portfolio Advisors, a diversified mortgage services provider, has introduced a service offering to address a problem for servicers and regulators – homeowners' association (HOA) claims for unpaid fees.
According to Wingspan, the claims pose threats to property sales and, in a number of areas, can result in liens that take precedence over first mortgages if not resolved. Wingspan says its new HOA resolution services can find, negotiate and resolve HOA issues to satisfy Freddie Mac and Fannie Mae requirements and protect lienholders against losses they often are unaware of as threats.
"There are over 350,000 HOAs in the United States and involve about 80 percent of all new residential construction," comments Ryan Lilly, senior vice president of Wingspan. "When borrowers fall behind in their monthly obligations or when lenders own properties within associations and are unaware of the HOA dues, clear title and even first-lien positions are endangered. Wingspan's new service identifies, tracks and deals directly with the HOAs to resolve claims, preserving lenders' and investors' interests."
Lilly notes HOAs require funding to keep common areas and amenities well-maintained and member property values where they should be. When HOAs are underfunded because of unpaid assessments, values are jeopardized due to deferred maintenance – therefore, getting HOA claims satisfied is in everyone's interests, according to the company.
"The problem often is that smaller HOAs are not professionally managed, and it can be difficult to find the right people to contact," Lilly continues. "We are building a database of HOA information to enable us to find the right people, stay current and provide a way for all parties to communicate for mutual benefit."Â
Wingspan says this database will create an index that identifies contact information, monitors trends and tracks high-risk management companies or areas.