More than 50% of U.S. homes are in a community with a homeowners association (HOA), so your business is likely affected by or can grow because of millions of properties. Whether you are a lender originating new loans and managing a portfolio of mortgages or a property services company that helps maintain homes and neighborhood common areas, knowing which properties are part of an HOA is vitally important. For lenders, portfolio monitoring for HOA liens provides crucial risk management, especially in the super-lien states where HOA liens can take priority over the first mortgage holder. For companies that offer maintenance, landscaping, and other property services to HOAs, targeted marketing using contact details like who and where to find the thousands of managing parties ensures a higher ROI with less effort.
In our previous HOA blog, we looked at the size of the HOA market and ways to overcome the challenges in finding accurate data, which comes from multiple sources, only some which are publicly available, for the more than 355,000 HOAs nationwide. In this blog, we’ll dive deeper into how HOA data – lien and contact – can be a valuable tool.
HOA Lien Data Uses
HOA liens are a threat to any mortgage lender. Those in the know face that threat head-on and have made it a priority to track properties in their portfolios that are in an HOA. That way, they can be alerted to and stay ahead of any HOA liens that may be placed on a property. First American Data & Analytics has made that task quick and easy. We offer automated portfolio monitoring on your preferred schedule that provides a clear indication when an HOA lien is recorded so that you can identify risk. This early warning system allows you to explore remediation options, such as paying off the lien to preserve the asset for individual properties and entire portfolios. Improve risk mitigation and issue detection by implementing proactive end-to-end and life-of-loan monitoring to reduce potential surprises that leave you little time to react.
Beyond simply identifying properties with HOA liens, it’s perhaps even more important to prioritize which of them are in or will soon be in the foreclosure process and therefore pose the most significant risk. Has the property already gone to sale? What is the property’s auction date? How many days has it been since the lien was filed, and how is it affected by local laws and statute of limitations? These are essential details necessary to triage risk, especially in large portfolios, and identify which loans to focus on and when.
Whether lenders rely on First American Data & Analytics to monitor their portfolios or license HOA lien data in bulk to manage the monitoring process in-house, portfolio monitoring is an invaluable tool that delivers significant ROI.
HOA Contact Data Uses
If your business targets HOAs, you need access to HOA contact information. The problem is that it’s surprisingly difficult to find. While it may seem easy enough to identify an HOA contact, the truth is that it’s not. There are three potential entities in the HOA ecosystem:
- The HOA itself.
- The management company that services the HOA, and if problems arise.
- The curative company or law firm handles properties with delinquent dues.
First American Data & Analytics can provide all three contacts. These contacts are available for all HOAs associated with a property since there can be multiple, including common areas, community pools, and golf courses.
Nothing kills a marketing campaign faster than not hitting the target audience. For marketers that target HOAs, getting to the right contact in the first go-around can mean all the difference in ensuring efficient and effective marketing outreach. Targeting specific potential customers to prioritize marketing spend may be more beneficial if you have information on the number of HOAs managed by an organization, the size of the HOA, or the value of the property. Luckily, First American Data & Analytics has all that data coupled with geographic segmentation to help you deliver a valuable roadmap to guide marketing efforts and improve results.
First American Data & Analytics has decades of experience collecting and managing public record data. The team used that collective knowledge to build a robust HOA database covering all 50 states. Backed by the industry's most accurate, current, and robust public record dataset, our HOA data is aggregated from proprietary sources and extracted immediately from document recordings once they are received.