DonnaB1 (Missouri)
Posts: 17
Posts: 17
Posted:
If a lien is put on a homeowner in an HOA, can it also be reported to the credit company?
DonnaB
DonnaB
A service of:
Community123.com
Professional websites for HOAs & condos, since 2004
Professional websites for HOAs & condos, since 2004
🎁 1st year FREE for HOATalk members! →
credit report
Started by DonnaB1 • 24 replies • 6346 views
💬 Join us to post & get advice from 50,000 HOA & Condo leaders.
Create Free Account →
⚡ Takes 30 seconds
Already a member? Log in
MartyD (Florida)
Posts: 43
Posts: 43
Posted:
Once the lien is recorded it becomes public domain and Credit Bureaus pull a credit check it automactically serches for recorded outstanding judgements/liens. Normally these liens must be satisfied to purchase another house, refinance or take out home equity lines of credit...again the Mortgage company working for the HOA.
DonnaB1 (Missouri)
Posts: 17
Posts: 17
Posted:
Thank you, DonnaB
MikeS1
Posts: 668
Posts: 668
Posted:
We recently implemented a collection policy that includes using a collection agency. The additional cost of the collection agency is passed on to the owner and the HOA loses nothing. It's up to the collection to report the the credit agency. Should the collection agency fail, Va state law provides provisions that allows the HOA to lien the property. Once the arrearages hit a certain level, this goes to our attorney who initiates the lien process. After things got pretty bad, we processed 4 liens and it sent a strong signal to the community.
KellyW (Georgia)
Posts: 7
Posts: 7
Posted:
Along the same lines as DonnaB1 question - Do any HOAs in Georgia report the payment histories of the monthly HOA fees of its homeowners to the 3 credit bureaus?
Despite a great onsite property manager who reports delinquencies to the collections dept at our law firm, our HOA has a significant problem with HOA dues delinquencies. The HOA pays for nearly all services except an owners' personal electricity. Suspending cable service has not been successful in receiving HOA dues payments. In order to cease other association services provided to the resident(ie water, heat, air) we need a court order - which is often takes several years - yes years. Also, our law firm has not provided us with a consistent level of legal service (currently being addressed), so the board is seeking advice from additional sources, such as HOAtalk.com.
The board of directors is wondering if the property manager began reporting payment histories of the monthly HOA dues to the credit bureaus, would the HOA deliquencies decrease for the chronic late payers? Any thoughts or experience from anyone? Does the property manager use a software program to do so? Thank you.
Despite a great onsite property manager who reports delinquencies to the collections dept at our law firm, our HOA has a significant problem with HOA dues delinquencies. The HOA pays for nearly all services except an owners' personal electricity. Suspending cable service has not been successful in receiving HOA dues payments. In order to cease other association services provided to the resident(ie water, heat, air) we need a court order - which is often takes several years - yes years. Also, our law firm has not provided us with a consistent level of legal service (currently being addressed), so the board is seeking advice from additional sources, such as HOAtalk.com.
The board of directors is wondering if the property manager began reporting payment histories of the monthly HOA dues to the credit bureaus, would the HOA deliquencies decrease for the chronic late payers? Any thoughts or experience from anyone? Does the property manager use a software program to do so? Thank you.
JulieS (Georgia)
Posts: 412
Posts: 412
Posted:
Our HOA is in GA and we have judgements against two homeowners. I asked if this, along with poor payment history, can be reported on their credit reports and the answer was 'no' (and I don't know why).
MelissaP1 (Alabama)
Posts: 13,836
Posts: 13,836
Posted:
Liens are against property not exactly the homeowners. That is why a lien does NOT show against one's credit report for having a lien. If there is a judgement from small claims court, then that may show up on a credit report. However, a HOA should NEVER sue a homeowner but place a lien instead.
Let me clarify. A lien goes on the title of the property for which the homeowner's name is on. That homeowner can NOT sale that property until the lien is paid off. This lien stay attached to the property but not to the homeowner's name. The HOA places it on the exact property address. This doesn't mean the homeowner can't use this property as "rental" and still ignore the lien. The homeowner can ignore a lien for years and never pay until they decide to sale the property. The HOA is out the money for filing the lien, and the money owed accumulates. This is why Foreclosures are in place. It provides a legal way for the HOA to stop waiting on the lien to be paid off and take the property.
Many HOA's think "suing" in small claims court is the answer. However, it isn't. The HOA may win their lawsuit but the homeowner still doesn't have to pay for a long time. The "loophole" is that the homeowner can now sale the property and move out without ever paying the judgement. (Liens are judgements too). This method doesn't keep the owner feet tied. This judgement may go on the person's personal credit file, but what good is that? It just may limit them to credit card limits and having to rent property instead of buy.
Don't think the property lien will be on one's credit report. It won't be. Just make sure there is one in place and hold your breath. That's the best you can hope for in a HOA when people owe their HOA.
Let me clarify. A lien goes on the title of the property for which the homeowner's name is on. That homeowner can NOT sale that property until the lien is paid off. This lien stay attached to the property but not to the homeowner's name. The HOA places it on the exact property address. This doesn't mean the homeowner can't use this property as "rental" and still ignore the lien. The homeowner can ignore a lien for years and never pay until they decide to sale the property. The HOA is out the money for filing the lien, and the money owed accumulates. This is why Foreclosures are in place. It provides a legal way for the HOA to stop waiting on the lien to be paid off and take the property.
Many HOA's think "suing" in small claims court is the answer. However, it isn't. The HOA may win their lawsuit but the homeowner still doesn't have to pay for a long time. The "loophole" is that the homeowner can now sale the property and move out without ever paying the judgement. (Liens are judgements too). This method doesn't keep the owner feet tied. This judgement may go on the person's personal credit file, but what good is that? It just may limit them to credit card limits and having to rent property instead of buy.
Don't think the property lien will be on one's credit report. It won't be. Just make sure there is one in place and hold your breath. That's the best you can hope for in a HOA when people owe their HOA.
Former HOA President
MelissaP1 (Alabama)
Posts: 13,836
Posts: 13,836
Posted:
Liens are against property not exactly the homeowners. That is why a lien does NOT show against one's credit report for having a lien. If there is a judgement from small claims court, then that may show up on a credit report. However, a HOA should NEVER sue a homeowner but place a lien instead.
Let me clarify. A lien goes on the title of the property for which the homeowner's name is on. That homeowner can NOT sale that property until the lien is paid off. This lien stay attached to the property but not to the homeowner's name. The HOA places it on the exact property address. This doesn't mean the homeowner can't use this property as "rental" and still ignore the lien. The homeowner can ignore a lien for years and never pay until they decide to sale the property. The HOA is out the money for filing the lien, and the money owed accumulates. This is why Foreclosures are in place. It provides a legal way for the HOA to stop waiting on the lien to be paid off and take the property.
Many HOA's think "suing" in small claims court is the answer. However, it isn't. The HOA may win their lawsuit but the homeowner still doesn't have to pay for a long time. The "loophole" is that the homeowner can now sale the property and move out without ever paying the judgement. (Liens are judgements too). This method doesn't keep the owner feet tied. This judgement may go on the person's personal credit file, but what good is that? It just may limit them to credit card limits and having to rent property instead of buy.
Don't think the property lien will be on one's credit report. It won't be. Just make sure there is one in place and hold your breath. That's the best you can hope for in a HOA when people owe their HOA.
Let me clarify. A lien goes on the title of the property for which the homeowner's name is on. That homeowner can NOT sale that property until the lien is paid off. This lien stay attached to the property but not to the homeowner's name. The HOA places it on the exact property address. This doesn't mean the homeowner can't use this property as "rental" and still ignore the lien. The homeowner can ignore a lien for years and never pay until they decide to sale the property. The HOA is out the money for filing the lien, and the money owed accumulates. This is why Foreclosures are in place. It provides a legal way for the HOA to stop waiting on the lien to be paid off and take the property.
Many HOA's think "suing" in small claims court is the answer. However, it isn't. The HOA may win their lawsuit but the homeowner still doesn't have to pay for a long time. The "loophole" is that the homeowner can now sale the property and move out without ever paying the judgement. (Liens are judgements too). This method doesn't keep the owner feet tied. This judgement may go on the person's personal credit file, but what good is that? It just may limit them to credit card limits and having to rent property instead of buy.
Don't think the property lien will be on one's credit report. It won't be. Just make sure there is one in place and hold your breath. That's the best you can hope for in a HOA when people owe their HOA.
Former HOA President
MelissaP1 (Alabama)
Posts: 13,836
Posts: 13,836
Posted:
Liens are against property not exactly the homeowners. That is why a lien does NOT show against one's credit report for having a lien. If there is a judgement from small claims court, then that may show up on a credit report. However, a HOA should NEVER sue a homeowner but place a lien instead.
Let me clarify. A lien goes on the title of the property for which the homeowner's name is on. That homeowner can NOT sale that property until the lien is paid off. This lien stay attached to the property but not to the homeowner's name. The HOA places it on the exact property address. This doesn't mean the homeowner can't use this property as "rental" and still ignore the lien. The homeowner can ignore a lien for years and never pay until they decide to sale the property. The HOA is out the money for filing the lien, and the money owed accumulates. This is why Foreclosures are in place. It provides a legal way for the HOA to stop waiting on the lien to be paid off and take the property.
Many HOA's think "suing" in small claims court is the answer. However, it isn't. The HOA may win their lawsuit but the homeowner still doesn't have to pay for a long time. The "loophole" is that the homeowner can now sale the property and move out without ever paying the judgement. (Liens are judgements too). This method doesn't keep the owner feet tied. This judgement may go on the person's personal credit file, but what good is that? It just may limit them to credit card limits and having to rent property instead of buy.
Don't think the property lien will be on one's credit report. It won't be. Just make sure there is one in place and hold your breath. That's the best you can hope for in a HOA when people owe their HOA.
Let me clarify. A lien goes on the title of the property for which the homeowner's name is on. That homeowner can NOT sale that property until the lien is paid off. This lien stay attached to the property but not to the homeowner's name. The HOA places it on the exact property address. This doesn't mean the homeowner can't use this property as "rental" and still ignore the lien. The homeowner can ignore a lien for years and never pay until they decide to sale the property. The HOA is out the money for filing the lien, and the money owed accumulates. This is why Foreclosures are in place. It provides a legal way for the HOA to stop waiting on the lien to be paid off and take the property.
Many HOA's think "suing" in small claims court is the answer. However, it isn't. The HOA may win their lawsuit but the homeowner still doesn't have to pay for a long time. The "loophole" is that the homeowner can now sale the property and move out without ever paying the judgement. (Liens are judgements too). This method doesn't keep the owner feet tied. This judgement may go on the person's personal credit file, but what good is that? It just may limit them to credit card limits and having to rent property instead of buy.
Don't think the property lien will be on one's credit report. It won't be. Just make sure there is one in place and hold your breath. That's the best you can hope for in a HOA when people owe their HOA.
Former HOA President
BradD2 (Florida)
Posts: 418
Posts: 418
Posted:
In Florida we can't place liens for fines, taking them to court is the only way. Once a judgement has not been paid for I think 30 days we can then file the lien.
NL (Virginia)
Posts: 43
Posts: 43
Posted:
How did your HOA go about finding a collection agency, I am in a small HOA and we have two habiutal late payers of both dues and any penalties charged to them for violation of documents. Once is now 6 months behind and just doesn't pick up certified letters, answer his phone.... a real deadbeat.
CharlesW1 (Georgia)
Posts: 826
Posts: 826
Posted:
Quote:
Posted By NL on 01/20/2008 8:27 PM
How did your HOA go about finding a collection agency, I am in a small HOA and we have two habiutal late payers of both dues and any penalties charged to them for violation of documents. Once is now 6 months behind and just doesn't pick up certified letters, answer his phone.... a real deadbeat.
How did your HOA go about finding a collection agency, I am in a small HOA and we have two habiutal late payers of both dues and any penalties charged to them for violation of documents. Once is now 6 months behind and just doesn't pick up certified letters, answer his phone.... a real deadbeat.
NL,
Others may or may not agree with my views although MY way is general viewed (by the community) as being the most beneficial to them.
“IF” all else, you’ve tried, has failed. I would have the delinquent HO served by the county police. That will required substantial amount of money. However, it takes money to make money!
Especially if this particular dead beat is in arrears several months, the amount owned may be insignificant in the cost to recover such money owned.IMO
Best of luck collecting
We have all been there and done that.
Use the search box to read previously written posts, will certainly be very helpful with various suggestions and further advice.
Chuck W.
Charles E. Wafer Jr.
MelissaP1 (Alabama)
Posts: 13,836
Posts: 13,836
Posted:
You must be a member of the board or the President of the board to take action against a non-payer. It has to have agreement to pursue the correct avenues to collect. Any member can't just decide their neighbor isn't paying and take action.
You can't collect on something that hasn't proven owed. The best first step is to find a lawyer and pay them to place a lien on the property for the money owed. A lien works the best and is the BEST option. Once you get the lien and they don't pay, THEN you can proceed with Foreclosure, collection agency, or other court options.
No offense, but in alot of states, sherrif's or county officers are used for eviction of RENTERS NOT Homeowners. There are states where they do use county officers in some kind of form but I am not familiar with that process. Others here are. It will depend on your state.
Get a lawyer, file a lien, and get your court ruling. Mind you they can fight a court ruling for a long time but in the end, they will owe the court costs, the money owed, and the money the HOA paid out to file the lien. It's NOT a money maker by placing a lien on a house. You basically break-even.
You can't collect on something that hasn't proven owed. The best first step is to find a lawyer and pay them to place a lien on the property for the money owed. A lien works the best and is the BEST option. Once you get the lien and they don't pay, THEN you can proceed with Foreclosure, collection agency, or other court options.
No offense, but in alot of states, sherrif's or county officers are used for eviction of RENTERS NOT Homeowners. There are states where they do use county officers in some kind of form but I am not familiar with that process. Others here are. It will depend on your state.
Get a lawyer, file a lien, and get your court ruling. Mind you they can fight a court ruling for a long time but in the end, they will owe the court costs, the money owed, and the money the HOA paid out to file the lien. It's NOT a money maker by placing a lien on a house. You basically break-even.
Former HOA President
NL (Virginia)
Posts: 43
Posts: 43
Posted:
I hope u don't mind me contacting you directly. I am president of a small HOA in Northern VA, and am having problems with two homeowners, one is resident occupied, the other rented. Both are in arrears on their HOA Dues and one is in serious arrears on fines and penalties for misc. violations, and of course the maintenance violations are not repaired. We are thinking about using a collection agency to try and pursue them, since having a public record on your credit is not a good thing. How did your HOA go about doing this? And what collection agency do you use? We are only 20 houses so we try to keep the extra cost to a minimum, and do as much as we can ourselves. Even though our documents say the individual homeowners are responsible for all cost associated with collection or court proceedings including attorney fees are their responsibility - it will takes a longtime to get a lein put on a property and than collecting, and all the cost have to be paid up front.
In 10 yrs of being President of the HOA, I have never had any problems with this until recently - the new rentor is trouble - and says she doesn't have to follow the rules since her landlord didn't supply them for to her - so the fines just continue to pile up.
Any help with this is appreciated.
Thanks, Alan
In 10 yrs of being President of the HOA, I have never had any problems with this until recently - the new rentor is trouble - and says she doesn't have to follow the rules since her landlord didn't supply them for to her - so the fines just continue to pile up.
Any help with this is appreciated.
Thanks, Alan
JosephW (Michigan)
Posts: 882
Posts: 882
Posted:
NL: irst make sure you're in compliance with VA Law Especially the amounts and time frame:
§ 55-513. Adoption and enforcement of rules.
A. The board of directors of the association shall have the power to establish, adopt, and enforce rules and regulations with respect to use of the common areas and with respect to such other areas of responsibility assigned to the association by the declaration, except where expressly reserved by the declaration to the members. Rules and regulations may be adopted by resolution and shall be reasonably published or distributed throughout the development. A majority of votes cast, in person or by proxy, at a meeting convened in accordance with the provisions of the association's bylaws and called for that purpose, shall repeal or amend any rule or regulation adopted by the board of directors. Rules and regulations may be enforced by any method normally available to the owner of private property in Virginia, including, but not limited to, application for injunctive relief or damages, during which the court may award to the association court costs and reasonable attorneys' fees.
B. The board of directors of the association shall also have the power, to the extent the declaration or rules and regulations duly adopted pursuant thereto expressly so provide, to (i) suspend a member's right to use facilities or services, including utility services, provided directly through the association for nonpayment of assessments which are more than sixty days past due, to the extent that access to the lot through the common areas is not precluded and provided that such suspension shall not endanger the health, safety, or property of any owner, tenant, or occupant and (ii) assess charges against any member for any violation of the declaration or rules and regulations for which the member or his family members, tenants, guests, or other invitees are responsible.
Before any such charges or suspension may be imposed, the member shall be given an opportunity to be heard and to be represented by counsel before the board of directors or other tribunal specified in the documents. Notice of a hearing, including the charges or other sanctions that may be imposed, shall be hand delivered or mailed by registered or certified mail, return receipt requested, to the member at the address of record with the association at least fourteen days prior to the hearing.
The amount of any charges so assessed shall not be limited to the expense or damage to the association caused by the violation, but shall not exceed fifty dollars for a single offense or ten dollars per day for any offense of a continuing nature and shall be treated as an assessment against the member's lot for the purposes of § 55-516. However, the total charges for any offense of a continuing nature shall not be assessed for a period exceeding ninety days. After the date a lawsuit is filed challenging any such charges, no additional charges shall accrue. If the court rules in favor of the association, it shall be entitled to collect such charges from the date the action was filed as well as all other charges assessed pursuant to this section against the lot owner prior to the action.
The hearing result shall be hand delivered or mailed by registered or certified mail, return receipt requested, to the member at the address of record with the association within seven days of the hearing
-------------------------
t some point you're probably going to have to get an attorney. For the absentee owner, you may get the court to require the rent checks be sent to you to cover the back assessments. The owner would then be losing money on two fronts, and may want to "settle up". At the same time you could have the court remind the renter that they have to obey the association's documents and rules, even if the owner didn't tell them, that's between the renter and the owner.
Joe
§ 55-513. Adoption and enforcement of rules.
A. The board of directors of the association shall have the power to establish, adopt, and enforce rules and regulations with respect to use of the common areas and with respect to such other areas of responsibility assigned to the association by the declaration, except where expressly reserved by the declaration to the members. Rules and regulations may be adopted by resolution and shall be reasonably published or distributed throughout the development. A majority of votes cast, in person or by proxy, at a meeting convened in accordance with the provisions of the association's bylaws and called for that purpose, shall repeal or amend any rule or regulation adopted by the board of directors. Rules and regulations may be enforced by any method normally available to the owner of private property in Virginia, including, but not limited to, application for injunctive relief or damages, during which the court may award to the association court costs and reasonable attorneys' fees.
B. The board of directors of the association shall also have the power, to the extent the declaration or rules and regulations duly adopted pursuant thereto expressly so provide, to (i) suspend a member's right to use facilities or services, including utility services, provided directly through the association for nonpayment of assessments which are more than sixty days past due, to the extent that access to the lot through the common areas is not precluded and provided that such suspension shall not endanger the health, safety, or property of any owner, tenant, or occupant and (ii) assess charges against any member for any violation of the declaration or rules and regulations for which the member or his family members, tenants, guests, or other invitees are responsible.
Before any such charges or suspension may be imposed, the member shall be given an opportunity to be heard and to be represented by counsel before the board of directors or other tribunal specified in the documents. Notice of a hearing, including the charges or other sanctions that may be imposed, shall be hand delivered or mailed by registered or certified mail, return receipt requested, to the member at the address of record with the association at least fourteen days prior to the hearing.
The amount of any charges so assessed shall not be limited to the expense or damage to the association caused by the violation, but shall not exceed fifty dollars for a single offense or ten dollars per day for any offense of a continuing nature and shall be treated as an assessment against the member's lot for the purposes of § 55-516. However, the total charges for any offense of a continuing nature shall not be assessed for a period exceeding ninety days. After the date a lawsuit is filed challenging any such charges, no additional charges shall accrue. If the court rules in favor of the association, it shall be entitled to collect such charges from the date the action was filed as well as all other charges assessed pursuant to this section against the lot owner prior to the action.
The hearing result shall be hand delivered or mailed by registered or certified mail, return receipt requested, to the member at the address of record with the association within seven days of the hearing
-------------------------
t some point you're probably going to have to get an attorney. For the absentee owner, you may get the court to require the rent checks be sent to you to cover the back assessments. The owner would then be losing money on two fronts, and may want to "settle up". At the same time you could have the court remind the renter that they have to obey the association's documents and rules, even if the owner didn't tell them, that's between the renter and the owner.
Joe
Joseph West
Official HOATalk.com Sponsor
Community Associations Network, LLC
www.CommunityAssociations.net
*See legal notice below (end of page) or go to www.hoatalk.com/legal
Official HOATalk.com Sponsor
Community Associations Network, LLC
www.CommunityAssociations.net
*See legal notice below (end of page) or go to www.hoatalk.com/legal
NL (Virginia)
Posts: 43
Posts: 43
Posted:
MikeS1, where in VA are u located, I am president of an HOA and we are considering using a collection agency, I know under VA Law we can do this.
I know u can't recommend anyone, but how did you go about finding a collection agency to charge over and above the monies owed to the association? We are a very small community 20 houses.
Thanks
I know u can't recommend anyone, but how did you go about finding a collection agency to charge over and above the monies owed to the association? We are a very small community 20 houses.
Thanks
HaroldS (Arizona)
Posts: 906
Posts: 906
Posted:
Yes, and make sure you or your colleciton agent is following the Federal Fair Debt Collection Act.
MikeS1
Posts: 668
Posts: 668
Posted:
NL - Let me check with PM - Might take a few days.
ShawnaF (Colorado)
Posts: 84
Posts: 84
Posted:
FYI - if any of you are CAI members, the Colorado newsletter that just came out has a great article on something similar "CCIOA Lien Rights Affirmed by the Colorado Court of Appeals." May not apply to all states but there's some great info. They also have a local website www.hoa-colorado.org.
NL (Virginia)
Posts: 43
Posts: 43
Posted:
MikeS1, thanks. Any help is appreciated. I am one of those that like to have everything in order.
BarbaraD6 (Florida)
Posts: 347
Posts: 347
Posted:
Brad,
What fines are you talking about? HOA's in Florida can lien for fines not paid for violation of the governing documents, and delinquent association dues.
Barbara
What fines are you talking about? HOA's in Florida can lien for fines not paid for violation of the governing documents, and delinquent association dues.
Barbara
LarryB13 (Arizona)
Posts: 4,099
Posts: 4,099
Posted:
Quote:
Posted By BernadetteE on 07/30/2014 11:43 PM
Does bank account appear on credit report? Apparently, the Consumer Financial Protection Bureau has released a brand new study about credit history. It found, among other things, that credit card activity is the solitary most important factor analyzed by credit reporting agencies when determining credit history.
Does bank account appear on credit report? Apparently, the Consumer Financial Protection Bureau has released a brand new study about credit history. It found, among other things, that credit card activity is the solitary most important factor analyzed by credit reporting agencies when determining credit history.
Bernadette has reactivated a very old thread to spam with us with a link to a website where we can all obtain payday loans and similar services.
JohnB26 (South Carolina)
Posts: 1,001
Posts: 1,001
Posted:
Quote:
Posted By NL on 01/20/2008 8:27 PM
How did your HOA go about finding a collection agency, I am in a small HOA and we have two habiutal late payers of both dues and any penalties charged to them for violation of documents. Once is now 6 months behind and just doesn't pick up certified letters, answer his phone.... a real deadbeat.
How did your HOA go about finding a collection agency, I am in a small HOA and we have two habiutal late payers of both dues and any penalties charged to them for violation of documents. Once is now 6 months behind and just doesn't pick up certified letters, answer his phone.... a real deadbeat.
Begin foreclosing on the property.
JohnB26 (South Carolina)
Posts: 1,001
Posts: 1,001
Posted:
sorry .... I really must check the date of the thread
🎯 You've read this entire discussion
Join the conversation with 50,000 HOA & Condo Leaders:
- ✓ Ask follow-up questions
- ✓ Share your experience
- ✓ Get expert advice
- ✓ Access 350,000 discussions
Create Free Account →
⚡ Takes 30 seconds
Already a member? Log in here