Missed condo or HOA payments soon to effect credit score
Some property owners have been rather cavalier in submitting their payments to Condominium Associations or Home Owners Associations. If they make the payment a few weeks, months or even years late, there was really nothing to worry about.
That is about to change. One major credit reporting agency is planning to include missed Condo or HOA payments in their credit scores. It is probable that the other major credit reporting agencies will follow suit. The credit reporting company believes that persons who make timely payments should see an improvement in their credit score. Of course those who miss payments or are habitually late will see a negative effect. The companies also believe this reporting will have a major effect on condo and home owners associations as their cash flow should improve.
Reporting of missed condo or HOA payments will be phased in with full implementation before the end of 2016. This should give property owners an opportunity to catch up on late payments.
HOA’s and condo associations have been seeking this reporting for many years. Association managers have felt that many property owners abuse the system which is costly to those who pay on time and can be a factor in driving up fees. If everyone paid on time there would be a much better cash flow and interest payments to the association bank accounts would increase. When more property owners become aware of the new reporting there should be a positive effect on these accounts.
You have the legal right to view your credit report. To be sure that your credit report is correct, agencies have the obligation to provide a report at least once a year upon your request. For more information about obtaining a copy of your credit report, see this article on the Federal Trade Commission website. Get my free credit report