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.
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Donna Bishop Realtor phone: 239-560-3149 or email; firstname.lastname@example.org
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