If the homeowner were automatically reported to the credit bureau every month, he would have that incentive to stay up to date on his assessment payments.
What are the consequences of not paying HOA Dues – Part 2
In our previous post, we chronicled the true story of a homeowner, who has not paid their community association assessment in over three months. When we left off, the homeowner was discussing how much they loved the tennis courts, the pool and all of the amenities including the new fitness facility that someone is (hopefully) paying for.
During our interview with the homeowner, we asked.. “Why aren’t you paying your dues?” “Well I lost my Coupon Book”, they stated. “Well can’t you pay anyway?” They answer, “I don’t know who to pay, we just changed Management Companies”.
As a follow up question, we asked… “If you knew this affected your credit score, how would this story be different?” Intrigued they answered, “My HOA payments can affect my credit score? If that’s true, then I would want to pay on time.”
This is a common tale in the industry but it does not have to go on. The homeowner is now over 90 days delinquent, with no incentive to get up to date on his assessment payments. If he were automatically reported to the credit bureau every month, he would have that incentive.