Those Darn HOA Fees

Green Escrow | HOA

Did you know: property management companies collect over $70 billion in HOA fees every year in support of over 333,000 community associations. While the rates vary widely, they typically range from $200 to $400 per month.

Failure to pay HOA fees can not only affect your credit score, the HOA can place a lien against your property with the county clerk, which then becomes a public record and will appear on your title report should you attempt to sell your home. This can also impact your ability to qualify for a larger mortgage in the future.

Before you buy, know and understand the HOA requirements. Do they increase every year? Is there are possibility for HOA assessments? Any new HOA expenses in the planning stages?

HOA Payments and Credit Scores

Green Escrow | Credit Score

Equifax, one of the three major credit-reporting agencies, will begin receiving HOA payment informationand account status as early as October, which will then be used in credit score analysis. The Community Association Institute estimates that there are 333,000 community associations nationwide which collect some $70 billion per year.

By collecting information on HOA payments, the national credit-reporting agencies will raise these payments to the same level of importance as auto loans, credit card payments, and, of course, home loans.

The agencies believe this will “provide additional insight” into a consumer’s financial behavior.