Frequently Asked Questions
- Do you have a Glossary of Terms?
- What is SNAP Collections™?
- Why SNAP Collections™?
- Who is SNAP Collections™?
- How Does SNAP Collections work™?
- Can you walk me through the SNAP Collections™ Process?
- How is it possible that you can say, “If we don’t collect, we don’t get paid?”
- What about association foreclosures on the delinquent units?
- When SNAP Collections™ recovers money how long does it take to send it to the association?
- Does SNAP Collections™ accept Credit Cards and Debit Cards for payments from delinquent owners?
- How soon can we get started with SNAP Collections™?
- What if we want to cancel...What is your cancellation policy?
- Are there any hidden costs or setup fees?
- How many units do we need to get started?
- On Average, how long does it take for you to have a delinquency resolved?
- Is part of your program taking title to our properties and renting them out?
- Can you take units that are at our lawyer’s office now and place them into your program?
- Are you licensed?
- Do you backup the data?
- What will SNAP Collections do if an owner files for Bankruptcy?
- Why does the management company receive a percentage for the collections costs from SNAP Collections?
- What is the process if the delinquent owner sends a payment directly to the management company?
- How do you submit units for collections?
- How is the progress of collections reported to the association and how do you report the disbursement of funds that you have collected?
- Why use a collection company?
- Does SNAP Collections offer its services to businesses other then community associations?
- Is SNAP Collections a member of any National Trade Associations?
- When is a good time to start SNAP Collections?
- Does SNAP Collections charge an annual fee?
- Is there any involvement or requirement of the association or management company after we have submitted a case for collections?
Frequently Asked Questions & Answers
What is SNAP Collections™?
SNAP Collections™ is an effective collections platform for community associations designed to to be easy, efficient and cost effective, with the goal of recovering the maximum amount for the association.
topWhy SNAP Collections™?
SNAP is an acronym for Simplified Nationwide Association Platform. Community Associations and their management companies need a simple collections solution for their delinquent units. A solution that is easy, transparent, and effective. A solution that will work to maximize the association's recovery of their maintenance fees, and where all costs and fees are deferred (so no out of pocket costs along the way), and with our interests aligned.
topWho is SNAP Collections™?
SNAP Collections™ is brought to community associations and management companies by Association Financial Services, L.C. of Miami, Florida. AFS was founded in 2006 and has been instrumental in bringing innovative cash flow stabilization and collection services to the Florida market which was hit hard by the foreclosure crisis. AFS currently services hundreds of community associationsand tens of thousands of units. AFS has the experience, technology and resources to make the collections experience a lot easier for associations and their management companies. AFS is a licensed and insured collection company, so you can have the confidence to know that your collection matters are being handled by professionals.
topHow Does SNAP Collections work™?
Working with your association’s management company SNAP Collections™ will handle the entire collections process from debtor notification through final resolution. SNAP Collections™ seeks to ensure that the association recovers the maximum from the delinquent owner, subsequent purchaser, and foreclosing bank. SNAP Collections™ always treats your association members with dignity and respect with the goal of having a good paying owner in every unit.
topCan you walk me through the SNAP Collections™ Process?
The process for every state is unique. Please ask your manager for the flow chart for your state.
topHow is it possible that you can say, “If we don’t collect, we don’t get paid?”
SNAP Collections™ works to recover all collection fees from the delinquent unit owner, subsequent purchaser or foreclosing bank on behalf of the association in accordance with applicable law. If we cannot recover these fees due to State law, we will exchange the amount due to us for the remaining debt. In some states a minimal amount may be due on a file if nothing is collected.
topWhat about association foreclosures on the delinquent units?
The only real value in the association taking intervening title is if the association intends to rent out the unit and earn rental income until the first mortgage (bank) forecloses. Unless the association intends to actively rent out the unit/property, we do not believe taking intervening non-marketable title subject to a mortgage makes business sense for the association. However, if the association wants to foreclose and take intervening title, once the lien has been filed through the SNAP process, the association may engage an attorney to file the foreclosure (the attorney can be any attorney the association chooses, or the association can choose one of the AFS network attorneys).
topWhen SNAP Collections™ recovers money how long does it take to send it to the association?
Funds are transferred to associations on a weekly basis so if we collect on a Monday the association will have their money by that Friday.
topDoes SNAP Collections™ accept Credit Cards and Debit Cards for payments from delinquent owners?
Yes, we accept credit cards, debit cards, checks, echecks, ach for payment. We even accept cash at over 40,000 locations nationwide. We want to make it as easy as possible for a delinquent unit owner to remit payment.
topHow soon can we get started with SNAP Collections™?
SNAP Collections™ is available through your community association management company. Ask them for an agreement and we can be up and running in just days.
topWhat if we want to cancel...What is your cancellation policy?
If your association decides that they do not want to work with SNAP Collections™ they can cancel at any time. There is no requirement on the part of the association to ever submit additional units to the program. We believe that if we are doing our jobs properly, you'll want to submit units to us. Realistically though, over time, we anticipate your unit owners will learn that your association takes collections seriously and simply won't go delinquent as frequently. However, upon any termination, Units already in collections with AFS will continue to be serviced by AFS until resolution.
topAre there any hidden costs or setup fees?
No. You don’t have to pay anything upfront to get started as all costs and fees are deferred. However, we do charge costs and fees to the association, and the association in turn adds these collection costs to the unit ledger to be collected. All such costs and fees are listed on the collection schedule. When we collect the costs and fees, we are reimbursed. If we do not collect third party costs (if any), the association will have to pay them. If we do not collect our fees, the association typically does not have to pay them. Instead, we will acquire the remaining debt in consideration for the amount of the fees due to us.
topHow many units do we need to get started?
There is no minimum.
topOn Average, how long does it take for you to have a delinquency resolved?
This is a very difficult question to answer as there are many variables that are not under our control. Through our process, we are able to 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.
topIs part of your program taking title to our properties and renting them out?
No. If the association wishes to foreclose on their lien with the intention of renting out the unit, they may engage an attorney for that purpose (subject to our authorization and at their own expense) after we have the lien filed. We will work with the attorney to provide them any information they need throughout the process.
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Can you take units that are at our lawyer’s office now and place them into your program?
Yes. Be sure to provide us any costs or fees you have paid for (or been billed for) collections so we can add them to the ledger (if not already done) and work to collect them as part of the overall collection.
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Are you licensed?
Yes. We are a licensed consumer collections agency in each state in which we operate. Additionally, we carry Errors & Omissions Insurance that provides protection to us and to our clients, the community associations with whom we work.
top Do you backup the data?
Yes. We backup all data, both onsite on a continuing, real time basis and offsite, on a regularly scheduled basis.
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What will SNAP Collections do if an owner files for Bankruptcy?
SNAP Collections will respond to the bankruptcy filing with all the information required by the bankruptcy court including a proof of claim. However, it should be noted that once a unit owner files for bankruptcy the collections process must stop until the bankruptcy case is discharged by the bankruptcy court OR a relief from the Bankruptcy Stay is obtained. The SNAP Collections system will have the case monitored and proceed again after bankruptcy discharge. NOTE: SNAP Collections is NOT a law firm but may engage the services of an attorney to represent the association in these matters.
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Why does the management company receive a percentage for the collections costs from SNAP Collections?
Through experience SNAP Collections realizes that pursuing delinquent maintenance fees is a costly process for the management company and requires a team effort. SNAP Collections is willing to share a portion of THEIR fees with the management company to help the management offset their costs and expenses for the work required to collect the association's money.
top What is the process if the delinquent owner sends a payment directly to the management company?
If a payment is received at the management office they should forward it on to SNAP Collections. If the payment is erroneously deposited, then the management company must report it to SNAP Collections and forward the funds to SNAP Collections. It is imperative that payments that are received be sent to SNAP so that we may credit the ledger accordingly, maintain if initiated already accurate reporting to the credit bureaus, and reduce possible errors from taking place on ledgers.
topHow do you submit units for collections?
SNAP Collections has a web based portal where the management company can upload account information however they will also accept placements via fax, by email, or via traditional post.
topHow is the progress of collections reported to the association and how do you report the disbursement of funds that you have collected?
SNAP Collections has an online portal accessible only by the management company and board of directors. All activity, ledgers, payments, and service requests can be viewed on this website. The portal can also send out monthly reports. SNAP Collections also maintains a telephone call center where a dedicated customer service agent can answer your questions.
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Why use a collection company?
- Community association attorneys are not typically specialists in collecting debt. This is a principal focus area for SNAP Collections and the team behind it.
- In addition, attorneys typically charge by the hour for their efforts regardless of the results. SNAP Collections gets paid when AND IF we collect our fees.
- Law firms don't have the systems or capacity to report to credit bureaus. Many debtors will pay a collection agency even though they never cooperated with the management company, association, or even the attorney. Once the case is placed with a collection agency, some debtors pay in order to protect their remaining credit.
Does SNAP Collections offer its services to businesses other then community associations?
SNAP Collections specializes in community associations. This is why SNAP Collections is the best choice for your community associations. We know community associations and are focused in recovering your maintenance fees.
topIs SNAP Collections a member of any National Trade Associations?
SNAP Collections is powered and brought to the market by Association Financial Services, LC ("AFS"). AFS is a member of ACA International which is the largest association of credit and collection professionals. AFS also subscribes to a credit reporting bureau and has an A rating by the Better Business Bureau. In the community association industry, AFS is a National members of CAI (Community Association Institute) and an accredited Community Association Service Provider by the Florida Community Associaton Journal.
topWhen is a good time to start SNAP Collections?
This is entirely up to the board of directors of your community. It is highly recommended that the board craft a Uniform Collections Policy to establish an action plan, time line, and be perfectly clear as to the steps that will be taken in the event of a unit becoming delinquent. SNAP Collections satisfies much of this endeavor.
topDoes SNAP Collections charge an annual fee?
No, there are no annual or monthly fees. We are paid only when we recover your money. You have nothing to lose and everything to gain. There are no hidden setup fees.
topIs there any involvement or requirement of the association or management company after we have submitted a case for collections?
Once you have placed a case for collections we ask that you stop all in-house collection activities and cease all communications with the debtor regarding the debt as this will only compromise our collection efforts. Of course, since this is a community association, the management may communicate with the debtor regarding facilities issues and suspension of their rights according to state statues. Once again, it is important that you report all debtor payments to us. It is illegal to continue collections efforts and report a debtor to the credit bureaus when they have paid their account. If we require further information from the association regarding this case we require your cooperation. If there any fines or violations, change of maintenance fees, or special assessments to be added to the delinquent ledger we must be notified. Also, if the association is notified of a bankruptcy or first mortgagee foreclosure, we must be notified. This can be done through our web portal or via email, or post.
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SNAP COLLECTIONS GLOSSARY
SNAP Collections prides itself in being specialists in community association collections. However, each State is different and there is a process that will be unique to your State. Here is a list of some of the proactive and positive steps SNAP Collections may take in order to recover your association’s maintenance fees. Call us to provide you with a detailed action plan for your State.
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Case Review – A one-size-fits-all approach is not the best course of action. We will review each case to see how best to proceed with your file.
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Skip Trace – Skiptracing (also skip tracing) is the process of locating a person's whereabouts for any number of purposes. A skiptracer is someone who performs this task, which may be the person's primary occupation. The term "skip" refers to the person being searched for, and is derived from the idiomatic expression "to skip town", meaning to depart (perhaps in a rush), leaving minimal clues behind to "trace" the "skip" to a new location.
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Credit Bureau Reporting – Non-payment of association assessments is considered a consumer delinquency and they will be reported to the credit bureaus as per the FCRA (Fair Credit Reporting Act). This is a very potent tool in convincing a unit owner that it is in their best interest to pay their maintenance fees.
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Ledger Accounting – Keeping the ledgers up to date and in good order is critical to a good collection. This is done for all cases that we manage. Maintenance fees need to be added as well as fines and violations. SNAP Collections takes care of this and provides access to your ledgers on a web based portal.
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Ledger Audit – Your governing documents determine how much can be charged for late fees, late interest, fines and violations. Every ledger must be audited to be sure we are making a proper demand on the delinquent unit owner.
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FDCPA Notification – This is a Federal requirement and we are very careful to keep our processes compliant with not just Federal laws but state laws as well.
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Demand Notification – Worded to affect a positive response.
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Pre-Lien Notification – Varies by state and we will adhere to the statutes of your locality.
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Outbound Calls – This is done in compliance with the TCPA (Telephone Consumer Protection Act). We will reach out to your delinquent owners and with respect and dignity work with them to get on track again. We also advise them of what the continued consequences of non-payment will be.
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Trained Collection Agents – All of our agents are certified by the ACA and highly trained to be able to engage delinquent unit owners. We understand that people may be having hardships and we will work with them.
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Payment Plans & Plan Management – If a delinquent owner cannot pay all at once we help them craft a plan they can live with that makes it easier for them to pay and make the association whole again.
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Short Sales – Sometimes delinquent owners don’t understand that eventually harsh consequences can befall them if they continue to be in arrears with the association and the bank and that perhaps they need to seek out a remedy that will help them sell their unit. We work with these owners and give them the option to speak to a short sale specialist in the area who can help them sell their property and get on with their lives.
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Rentals – If an association has taken title to a unit and your state permits rentals we will work with a rental agent to monetize the unit and get revenue flowing back into the association.
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Bank Demand Notification – Every condo and HOA has the right to demand a payment for maintenance fees from a lending bank. In some cases these banks will remit maintenance fees and add them to the outstanding loan. Unless you make this demand you will never know if banks will pay for these outstanding balances. We make bank demands in each and every case and maintain a bank mortgage registry of the delinquent units in your association.
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Tenant Demand Letters – If a delinquent unit has a tenant residing in it and your state allows for the association to make a rent demand we will do that for the association. This is included in our services and where permitted has been very useful in improving cash flow for associations.
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Tenant Eviction Notices – If your state permits we will send tenant eviction notices to non paying renters.
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File Lien – Depending on your state if a lien is required to be placed on a delinquent unit we will do so using our attorney network in your state.
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Estoppels & Payoffs – Once the bank decides to foreclose on the delinquent unit our experienced collections team will maximize the recovery from the bank to the benefit of the association. It is not always the case that associations have to write off everything that is owed to them when the bank forecloses.
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Association Foreclosure – In some states it makes good sense to foreclose out on a lien. We will review the case and make our recommendation based upon the unique circumstances of each case.
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First Mortgage Foreclosure Response – If you are in a judicial state and your association is served with a lis-pendens from the bank SNAP Collection will respond with a specialized response that will help build a better case for maximum recovery when the bank finally forecloses.
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Online Payment Portal – We make it easy for delinquent owners to pay on line.
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Walk-In Cash Payment at 40,000+ Locations – Sometimes it’s easier for delinquent owners to pay in cash so we provide a service by which past due maintenance fees can be paid in retail locations throughout the United States.
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Online Account Access – Unit owners can log in to see what they owe 24/7.
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Credit Card, Debit Card, ACH, Check, eCheck, Cash – Giving delinquent owners choices in how they can pay makes it easier for them.
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Same Day Payment Processing – Once a payment is received our proprietary system records it and prepares a disbursement to your association bank account weekly.
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Accurate Payment Application – Every state has its own statutes about the order that payments must be applied. We understand this concept and are sure that when a payment is received it is applied to the account properly.
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Calls Recorded – Your owners must be treated with respect and dignity. All outbound and inbound calls are recorded and available for the board of directors or management to review. Notice that calls are being recorded are given before any conversation begins.
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Customer Contacts Tracked – Every contact with the customer is tracked in our system. This allows us to provide better customer service and work to resolve the delinquency with better information.
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Bi-Lingual Agents – Our highly trained agents are all proficient in English and Spanish and in many cases this is very helpful in order to obtain clear communication with unit owners.
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Data Backups – We utilize the most up to date computer systems and back up your data using redundant systems. Nothing has ever been lost to computer failure.
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In-House Counsel – Although we are not a law firm we maintain In House Legal Counsel to be sure that we are compliant with the FDCPA and that your association’s and unit owner’s rights are protected.
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Personal Judgments – If your state permits we will seek out personal deficiency judgments in order to recover lost maintenance fees post bank foreclosure or even pre bank foreclosure.
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Rental Receivers – If your state allows for a receiver to be appointed to collect rents or even rent out a unit before a foreclosure we will review this process with you and advise you as to a suggested course of action.
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Debtor Bankruptcy Proof of Claim – When an owner files for bankruptcy the association needs to respond to and we will do so on behalf of the association.
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Payoff Dispute Resolution – In states where banks cannot totally wipe out money's owed to an association with a foreclosure we will engage the bank and fight for the rights of the association to recover as much as possible.
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Applicable Law Adjustments – If your association must write off an amount we will calculate that adjustment and advise the management or association. Depending on state law there is always the possibility that the subsequent purchaser may be liable for a portion of what is owed to the association. We will make that determination to the benefit of the association.
top FDCPA: Fair Debt Collections Protection Act – Is an Federal statute, establishing legal protection from abusive debt collection practices. The Act creates guidelines under which debt collectors may conduct business, defines rights of consumers involved with debt collectors, and prescribes penalties and remedies for violations of the Act.
topFCRA: Fair Credit Reporting Act – Is a United States Federal law that regulates the collection, dissemination, and use of consumer information, including consumer credit information.
topTCPA – Telephone Consumer Protection Act – The TCPA is a Federal Law that restricts the use of automated telephone equipment. The TCPA limits the use of automatic dialing systems, artificial or prerecorded voice messages, SMS Text, and fax machines.
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National Headquarters:
SNAP Collections™
4770 Biscayne Blvd, Ste. 710
Miami, FL 33137
Tel: 305-677-0022
Sales: 866-736-3069
Support: 305-921-4620
Client Login Call now 866-736-3069
