[H.O.A.] Late Payments May Soon Affect Credit Scores

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The credit reporting agencies say it will soon take into account homeowner association fees. Homeowners who are late on payments may see it affect their credit score.

Sperlonga, a credit data aggregator, is the first company to provide homeowner association (HOA) payment and account status data to Equifax, which is one of the 3 major credit-reporting agencies. In October Equifax is set to roll out this new information.

HOA and property management companies collect approximately $70 billion in HOA payments yearly, among at least 333,000 communities, according to the Community Association Institute.

Until NOW, HOA payments have gone mostly unreported to the national credit-reporting agencies. This service will help elevate association payments to the same level of importance as the  consumer’s other financial obligations; such as mortgages, auto loans and credit card payments. Property Owners that pay HOA fees on time should begin to see the similar impart on their credit reports as they would any other payments traditionally found on their credit report.

Property Owners who are late or delinquent on HOA payments will likely see a negative affect on their credit score, just as if they missed a mortgage payment.

Introducing this new source of data beyond what has traditionally been found on credit files can provide additional insight into a consumer’s financial behavior and help deliver expanded credit access.

If you or anyone you know needs real estate advice, please do not hesitate to contact me.

Donna Bishop Realtor  phone: 239-560-3149  or email; donnabishoprealtor@gmail.com

Thanks for reading this and I hope to hear from you soon.

 

 

About donnabishoprealtor@gmail.com

Awesome Service: I make dreams come true. I am a Real Estate Consultant. I place great value on the needs, expectations and goals of all my clients whether buying or selling. By helping they find their perfect solution. I will truly listen to you. I have 33+ years experience in all phases of real estate. I am a Loan Modification Specialist, a Short Sale Expert, and a Successful Negotiator. A certified Senior Real Estate Specialist. Former Owner/Broker of A & B Mortgage Brokers of Fl. Plus a former Appraiser. A Professional Realtor. This experience and knowledge gives me the confidence to advise you correctly. I want you to have an Awesome Experience so you will recommend me to all the people you care about. After all, a referral is sending someone you care about to someone you respect.

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