Axela was founded by seasoned board members and business people who asked ourselves a question:
"Why is collections so expensive and ineffective for community associations?"
The answer was in the process. (aka, the way we've always done it)
Associations Have Been Doing Collections Backwards
When, after reasonable attempts to request payment, a homeowner doesn't pay maintenance fee assessments to their HOA or Condo Association, the default reaction of most managers and boards is to send the debtor's info to a collections attorney, and let the law sort it out.
The lawyer initiates proceedings to file a lien, which is the first step toward foreclosure and the association taking title to the property. From there, the association can rent out the home and try to recover their lost funds.
But the mortgagor still has a stake in the home, so even if the association does take title to the property, and manages to rent it out to try to recover some of the lost funds, it's only a matter of time before the bank lays claim to the title, and the association is left with no means to recover the lost funds.
The association is now out the legal fees, any amount they needed to spend to clean up and repair the property to rent out, plus the delinquent maintenance fees that prompted the action in the first place. And the likelihood that they were able to recover all that in the short amount of time they rented the unit is next to nil.
This ‘legal process’ offers a limited (and unpredictable) timeline. Its purpose is not to recover funds, but to enforce legal action. The process can be quite lengthy and expensive. This route seldom leads to full cash recovery, and the results are usually disappointing.
A Collections Process Focused on Recovery, Not Punishment
Having been in the business world ourselves, we were familiar with the standard business practice of employing a collections agency to try to recover lost funds prior to taking legal action or writing them off as bad debt. So why wasn't this same option being used in the community association industry?
We believe that communities deserve the same opportunities as the rest of the business world. That fund recovery can be done in an efficient, ethical, and legal manner that recovers funds for community associations without the need to put people out of their homes or take on the role of a rental agency.
We believe so strongly in our ability to recover past dues assessments without resorting to foreclosure that we decided to stake our own money and reputation on it, and Axela Technologies was formed.
Taking it to the Next Level With Technology
Axela was founded to provide an alternative to foreclosure to help HOAs and Condo Associations recover the money they are owed. But we took it a step farther, incorporating modern technologies to make the process simpler and more cost-effective.
It starts by integrating with the leading accounting software providers. We monitor our clients’ Accounts Receivable and notify them when an owner should be escalated to third-party collections, eliminating the need to constantly be checking owner balances and manually exchanging information.
Engagement is the key to successful collections. Our collections process emphasizes respectful engagement with property owners using a combination of notifications, phone calls, and various online tools. Collection calls can be uncomfortable and are often avoided, so we provide owners with an online portal where they can access their account and work to resolve the delinquency. They can also opt-in to receive email and text notifications with regards to their accounts.
We believe that our clients should be able to check on the status of their collection files in real-time, so we developed a client portal that provides the insight and transparency they need. They can download various reports, submit new files, and communicate directly with our collections team. If a file is escalated to legal action, attorneys continue working on our platform, ensuring that our clients stay informed through the entire recovery process.
An Alternative to Foreclosure for Community Associations
Foreclosing on someone’s home is a serious decision and doesn’t yield consistent results. If your motivation is recovering money for your association, consider a solution that fits your needs.
There is an alternative to a legal process of lien and foreclosure. A collections agency focused on community associations is the best alternative to foreclosure. At Axela, It's not about putting people out of their homes, but getting them to pay what they owe.
When it comes to recovering money for our clients, 'good enough' is not good enough!
Fill out this form and we will have a collections expert contact you and discuss how we can help improve your collections and recovery process with solutions tailored to fit your community association’s needs.
Updated on 2019-11-26T02:14:12-05:00, by .