Homeowners Beware: Soon Your Late HOA Fees Could Hurt Your FICO Score

By
Real Estate Agent with Maricopa Real Estate Co BR645115000

There is a Push to Make HOA Fees a Top Priority for HomeOwners

 

Currently most HOAs don't report your late payments but that might not be the case soon. FICO scores could be hit hard by those that don't pay on time.  

 

I was reading an article on Realtor.com - HOA Fees Now May Affect Credit Scores and realized how important it is for homeowners to know about possible changes coming in the future. As much as we all have a love hate relationship with our HOAs, unfortunately, they are still a financial obligation we all have. While the vast majority of HOAs do not report late payments, they do usually attach as a lien to be paid upon selling. 

 

In the future however, they might just hurt more than your sale, they might just impact your FICO which may in turn hurt the purchase of your next home. 

The article found on Realtor.com stated: 

"Until now, HOA payments have gone largely unreported to the national credit-reporting agencies,” says Matt Martin, chairman and founder of Sperlonga. “Our service will help elevate association payments to the same level of importance as the consumer’s other financial obligations like residential mortgages, auto loans, and credit card payments. Property owners that pay HOA fees on time should begin to see the similar impact [on] their credit reports as they would with other payment obligations traditionally found in a credit report.”

For property owners who are late or delinquent on their HOA payments, they will likely see a negative effect on their credit score, just as if they had missed a mortgage payment."

This change could impact current homeowners in a dramatic way if they get into a beef with their HOA and don't pay fines or monthly fees "as a matter of principle". 

Keep this in mind. Don't let an argument over weeds or newspapers hurt your future home purchase. 

This is great information for our customers / clients to realize before it is too late. 

Tammy

Posted by

-- ~~~~ 

Tammy Adams
Realtor®, Associate Broker, GRI (Graduate REALTOR® Institute), SRS (Seller Representative Specialist), ABR® (Accredited Buyer's Representative), ePro

A Maricopa Agent who Works, Lives & Loves Maricopa – Go Local!

 
The Maricopa Real Estate Company

21300 N. John Wayne Pkwy # 101, Maricopa, AZ 85139 
Cell: 520-233-8125  / 
Fax: (855) 271-7004

Email: tammyadams@tadams4u.com

Website: SellMyMaricopaHome.com

  

 

~~ 

ARE YOU A LOCAL SMALL BUSINESS OWNER?

Listen to the Local Small Business Coach Podcast

Listen on the LocalSmallBusinessCoach.com website or your favorite podcast app

~

Listen to the Start a Local Small Business Podcast

Listen on the StartALocalSmallBusiness.com website or your favorite podcast app

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
Home Buying
Location:
Arizona
Groups:
Buyer Information - What Buyers Need to Know in Today's Market
Tags:
fico scores
hoa payments

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Rainmaker
541,752
John Mosier
Realty ONE Group Mountain Desert - Prescott, AZ
Prescott's Patriot Agent 928 533-8142

Thanks, Tammy Adams ~ Realtor Maricopa, AZ, for posting this. I do not frequent Realtor.com and would not have found this post on my own. 

May 09, 2016 08:14 AM #1
Rainmaker
655,201
Carla Freund
Keller Williams Preferred Realty - Raleigh, NC
Carolina Life RealEstate & Relocation 919-602-8489

Tammy, great information. This could be a game changer! It will be interesting to see how it affects home owners and HOA's alike!

May 20, 2016 11:09 PM #2
Rainmaker
1,173,378
Jane Peters
Home Jane Realty - Los Angeles, CA
Los Angeles real estate concierge services

This is a good way to keep people current and also make them responsible. They will ultimately be the ones hurt.

Jun 19, 2016 04:55 AM #3
Ambassador
2,192,178
Debbie Laity
Cedaredge Land Company - Cedaredge, CO
Your Real Estate Resource for Delta County, CO

This is good information to share, Tammy. You know Cedaredge Land Company has a property management division, and we manage over 80 rental units. The software used to track payments reports late and timely payments made to the credit bureaus. So making on time payments helps your credit score and late payments will hurt it. 

Jun 24, 2016 10:56 AM #4
Rainmaker
3,249,626
Lou Ludwig
Ludwig & Associates - Boca Raton, FL
Designations Earned CRB, CRS, CIPS, GRI, SRES, TRC

Tammy

Thank you for sharing the information on late HOA fees.

Good luck and success.

Lou Ludwig

Jun 24, 2016 11:04 AM #5
Rainmaker
601,138
Pamela Cendejas
Second Self Virtual Assistance - Kingman, AZ
Second Self Virtual Assistance (928) 692-3235

That is such important information to know.  We have a pretty good HOA but have not been informed about this new push yet.

Jul 01, 2016 05:14 AM #6
Rainmaker
1,678,493
Larry Johnston
Broker, Friends & Neighbors Real Estate and Elkhart County Subdivisions, LLC - Elkhart, IN
Broker,Friends & Neighbors Real Estate, Elkhart,IN

Hi Tammy Adams ~ Realtor Maricopa, AZ ,  I hadn't heard that, but it doesn't surprise me.

Jul 01, 2016 02:21 PM #7
Post a Comment
Spam prevention
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainmaker
304,200

Tammy Adams ~ Realtor / Podcaster

A Maricopa Agent who Works, Lives & Loves Maricopa
Got a Question? I'd Love to Help
*
*
*
*
Spam prevention

Additional Information