Homeowner Alert: Late HOA Payments May Affect Your Credit Score... And Cause You To Lose Your Home!
If you bought a home with a Homeowner Association, you should know that they are powerful entities that control what you can do with your property. Associations have rules and regulations that protect uniformity and ornate in your community. As a result, many Homeowner Associations prohibit certain activities, such as painting your home using an unapproved color, displaying certain flags, parking commercial vehicles and others.
The Homeowner Association can file a lawsuit to force you to correct any violations to the HOA rules and regulations. It can also file a lawsuit to collect unpaid dues and any attorney fees and costs the HOA may spend in the process of enforcing the rules or collecting their dues. Some owners ignore the danger of falling behind in HOA payments or violating the HOA rules. The snowball effect of compounded interest, dues, late fees and attorney fees can result in the loss of their home via foreclosure. Yes, in Florida, the HOA also has the power to take your home via foreclosure if you get behind in your dues or if you violate the rules of the association!
Now, as if homeowners needed additional HOA-related pains, the HOA can also report your late payments to the credit bureaus. While not every HOA is set up for credit bureau reporting, it's important to keep in mind that if the HOA files a lawsuit and obtains a judgment against you, that can also be picked up by the credit bureaus and added to your credit profile as a derogatory public record.
My advice: Act now if you are behind in HOA payments. Bring your account current and follow the governing rules. Besides the danger of losing your home, adding a negative account to your credit report may prevent you from refinancing your current mortgage or obtaining financing for your next home purchase.
Now... if you don't like the rules of your HOA, you may want to consider moving to a different community. I have helped many homeowners upgrade their living experience by selling their homes and purchasing a new one in a community that better fits their needs and lifestyle.
Call me at (407) 443-3833 or visit my page at www.MiltonTheRealtor.com for more information.
* - Don't forget to connect with me on LinkedIn, Facebook (English and Spanish) and Twitter!
The Homeowner Association can file a lawsuit to force you to correct any violations to the HOA rules and regulations. It can also file a lawsuit to collect unpaid dues and any attorney fees and costs the HOA may spend in the process of enforcing the rules or collecting their dues. Some owners ignore the danger of falling behind in HOA payments or violating the HOA rules. The snowball effect of compounded interest, dues, late fees and attorney fees can result in the loss of their home via foreclosure. Yes, in Florida, the HOA also has the power to take your home via foreclosure if you get behind in your dues or if you violate the rules of the association!
Now, as if homeowners needed additional HOA-related pains, the HOA can also report your late payments to the credit bureaus. While not every HOA is set up for credit bureau reporting, it's important to keep in mind that if the HOA files a lawsuit and obtains a judgment against you, that can also be picked up by the credit bureaus and added to your credit profile as a derogatory public record.
My advice: Act now if you are behind in HOA payments. Bring your account current and follow the governing rules. Besides the danger of losing your home, adding a negative account to your credit report may prevent you from refinancing your current mortgage or obtaining financing for your next home purchase.
Now... if you don't like the rules of your HOA, you may want to consider moving to a different community. I have helped many homeowners upgrade their living experience by selling their homes and purchasing a new one in a community that better fits their needs and lifestyle.
Call me at (407) 443-3833 or visit my page at www.MiltonTheRealtor.com for more information.
* - Don't forget to connect with me on LinkedIn, Facebook (English and Spanish) and Twitter!
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