May 11 2016 18839 1

Dated: 05/11/2016

Views: 264

Late HOA payments may soon affect credit scores

NEW YORK – May 10, 2016 – A major credit reporting agency says 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 three major credit-reporting agencies. A full rollout of the new HOA reporting to Equifax will go live in October.

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

"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."

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

"Introducing new sources 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," says Mike Gardner, senior vice president at Equifax.

Source: Sperlonga and "Your HOA Payments May Now Affect Your Credit Score," Credit.com (May 4, 2016)

© Copyright 2016 INFORMATION, INC. Bethesda, MD (301) 215-4688

Want to Advertise on this Site?

Latest Blog Posts

May 10 2018 18839 1

  The trees that help — and hurt — a home's value   ORLANDO, Fla. – May,

Read More

Five Unexpected Ways Owning A Home Benefits You

You probably know that owning your own home can benefit you financially, but home ownership comes with a surprising number of health, wealth and social perks too. Check out these five

Read More

What Not To Do When Getting A Mortgage

Waiting until you can make a 20% down paymentA 20% down payment is the golden number when applying for a conventional home loan, since it enables you to avoid paying private mortgage

Read More

Sep 29 2017 18839 1

Real estate Q&A: Mortgage relief after Hurricane Irma?FORT LAUDERDALE, Fla. – Sept. 28, 2017 – Question: While we survived Hurricane Irma, we missed a lot of work and had to spend our

Read More