What is HAAP?
HAAP stands for Homeowner Assessment Assurance Program and is used to replicate a perfect cash flow scenario for your community association. When a delinquent owner fails to pay their assessments, Axela will advance the shortfall to the association, which can use the funds in any way they please.
Is HAAP a loan to the association?
No. The funding of delinquent assessments is not a loan. It is simply an advance against your accounts receivables, and if we cannot recover our money from the delinquent owner Axela will take the loss.
This sounds “too good to be true.” How can Axela advance money and the association NOT be responsible for its repayment?
Axela will only advance money on units where we are confident that we will recover our money when the delinquency is settled out. We are able to due this thanks to our proprietary technology which can accurately predict the probability of recovery for individual accounts.
What happens if Axela does not recover the capital that has been advanced?
If Axela does not recover its capital, then it is totally at our risk and we will take a loss. However, you can be sure that we will do a very thorough underwriting of the unit and unit owner before we will process a payment to the association.
What does the underwriting process entail?
Axela is a technology company and data aggregation is our forte. All of this happens “under the hood” and does not require any physical data exchange with the association. Once the underwriting process is completed we will send you a funding proposal before we ask you to sign any agreement.
If the unit remains delinquent will you continue to fund the shortfall?
Yes. And we will continue to fund the unit so long as it passes our underwriting parameters.
Do you charge interest for this funding?
No. HAAP is only provided in tandem with our Easy Collect program, and the charges for this program are the equivalent to the late fees and late interest the association can charge a delinquent owner. There are no hidden fees, charges, service fees, application fees, points, or setup fees beyond what Easy Collect charges.
On average, how long does it take for you to have a delinquency resolved?
Our average recovery time is 67 days. Through our process, we can bring certain units to resolution quickly. However, other units may have to wait for a first mortgagee to foreclose or complete a short sale. Our goal is to engage the owner to bring about a better resolution for all parties and work to maximize the amount recovered for the association.
If we engage your company for the Easy Collect program do, must we take the HAAP funding?
No. If your association only wants us to collect your money from delinquent owners then we do not have to fund the collection shortfalls. The funding from HAAP is voluntary to your association.