ServiceLink has announced the availability of HOA Resolve, its proprietary system dedicated to homeowners association (HOA) management. ServiceLink has years of proven, dedicated experience in HOA management and that level of knowledge and first-hand experience is reflected in HOA Resolve. HOA Resolve prevents closing delays and mitigates lenders' and servicers' risk of overpayment by quickly identifying HOAs through direct access to information from Fidelity National Financial's network of more than 5,000 local title agents and working with them to bring any outstanding fees current. This is accomplished through ServiceLink's review of existing mortgage or title documents and verification against an internal database, as well as other drivers. ServiceLink then contacts the HOA regarding the status of the account to confirm all charges are within legally required limits and, if possible, negotiates the terms to reduce its client's financial exposure. Once finalized, ServiceLink handles payments and processing to ensure there are no outstanding HOA title curative issues when the property goes under contract.
The issue of HOA fees is a significant one for lenders in today's market. When a financial institution takes possession of a property through foreclosure or through a bulk sale, for example, it may also assume the responsibility for any outstanding HOA fees or penalties tied to that property. ServiceLink's HOA Resolve helps lenders by coordinating all open accounts associated with a foreclosure and ensuring that they are closed upon finalization of the transaction. In doing so, ServiceLink is saving its lender customers, on average, more than $3,100 per foreclosure.
"Lenders understand and expect to fulfill HOA obligations tied to their portfolio properties and in working closely with HOAs and their attorneys, we help ensure that those obligations are met and that the fees and dues are not above and beyond what is supported by the legal statute," said Stacey Bayley, senior vice president of asset management and disposition for ServiceLink. "Through HOA Resolve, our lender customers are better positioned to quickly identify properties with HOA commitments and determine the correct settlement amount prior to closing."