Credit Reporting

Started by NpS • 15 replies • 1415 views

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NpS (Pennsylvania)
Posts: 4,216

Posted:

Didn't see anything current on this, but might have missed it.

Is anyone doing credit reporting on delinquencies?

We've shied away from if because of (1) cost; and (2) concern about liability for false information.

Sikubali jukumu. Read all posts at your own risk.

TimB4 (Tennessee)
Posts: 21,062

Posted:

Our lawyer will once the issue has been turned over for collections.

MelissaP1 (Alabama)
Posts: 13,836

Posted:

Since we don't collect Social Security numbers, we don't directly report it against their credit. However, once a lien or a foreclosure is filed, then that should be reflected sometime along the process. Although it's not a guarantee that liens/foreclosures show up. Depends how it is done. Since banks do beat the HOA to the punch in foreclosures in some cases. Since liens/foreclosures are against property it may not show up.

Former HOA President

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Quote:

Posted By TimB4 on 07/12/2016 8:56 AM
Our lawyer will once the issue has been turned over for collections.

Same here though as soon as credit reporting (talked about but not done in the initial stages), many do pay up. The threat of such is a great tool.

RichardP13 (California)
Posts: 3,868

Posted:

There is a company, partnering with CAI (Community Associations Institute) and working with a number of association software packages to integrate credit reporting to the bureaus.

My company is slated to sit down with them early next month.

RichardP13 (California)
Posts: 3,868

Posted:

Quote:

Posted By MelissaP1 on 07/12/2016 12:32 PM
Since we don't collect Social Security numbers, we don't directly report it against their credit. However, once a lien or a foreclosure is filed, then that should be reflected sometime along the process. Although it's not a guarantee that liens/foreclosures show up. Depends how it is done. Since banks do beat the HOA to the punch in foreclosures in some cases. Since liens/foreclosures are against property it may not show up.

A lien or foreclosure initiated by an HOA will not show up on a credit report, but will show up if the bank does it. Why, the social security number.

How do you get the homeowner to pay, hit where it hurts , their wallet. If you credit score goes down, your credit card rates goes up. If you are late on your B of A card, your Chase card will go up.

Banks beat the HOA to the foreclosure process, because they actually exercise that privilege. That same privilege is actually afforded an HOA, but RARELY do they take advantage of it. A mortgage, secured by a security instrument, is also against the property.

NpS (Pennsylvania)
Posts: 4,216

Posted:

Quote:

Posted By JohnC46 on 07/12/2016 5:29 PM

Posted By TimB4 on 07/12/2016 8:56 AM
Our lawyer will once the issue has been turned over for collections.

Same here though as soon as credit reporting (talked about but not done in the initial stages), many do pay up. The threat of such is a great tool.

Tim and John

Could you describe your collection process? Does your attorney actually report to credit reporting agencies? Or are you talking about collection companies doing the reporting?

Sikubali jukumu. Read all posts at your own risk.

NpS (Pennsylvania)
Posts: 4,216

Posted:

Quote:

Posted By RichardP13 on 07/12/2016 5:38 PM
There is a company, partnering with CAI (Community Associations Institute) and working with a number of association software packages to integrate credit reporting to the bureaus.

My company is slated to sit down with them early next month.

I think I know who you're talking about Richard.

Spoke to them. They're interested in getting data on all accounts, not just the delinquent ones.

Not sure that would go over well here. People who pay on time don't see the benefit. Not enough slow payers to make it worthwhile financially.

Interested in hearing more after you meet with them.

Sikubali jukumu. Read all posts at your own risk.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

NPS

When one is overdue they get 2 letters (30 days apart) from our management company. The 2nd letter says if not paid in 30 days the matter will be turned over to our law firm for lien and collection.

Our law firm then writes a letter threatening lien and possible foreclosure along with an oblique reference to credit reporting. This is done at a cost of some $80?? to the HOA.

If still unpaid (up to the HOA to notify the attorney), the law firm writes a letter saying a lien has been placed and foreclosure and credit reporting will commence and in order to stop the action dues must be caught up (to the HOA) and there is now an additional $495 legal charge payable to the law firm.

If still unpaid, the law firm then (no prompting by the HOA) writes a letter saying foreclosure has commenced and credit bureaus will be notified. The is also now an additional $1,250.00 legal charge payable to the law firm.

Our HOA has never been party to a foreclosure (about one a year) as we have never been able to economically justify such action.

One asks about social security numbers for credit bureau reporting, When we asked our law firm about it they replied: "we have our ways of obtaining them".

NpS (Pennsylvania)
Posts: 4,216

Posted:

Quote:

Posted By JohnC46 on 07/13/2016 8:01 AM
NPS

When one is overdue they get 2 letters (30 days apart) from our management company. The 2nd letter says if not paid in 30 days the matter will be turned over to our law firm for lien and collection.

Our law firm then writes a letter threatening lien and possible foreclosure along with an oblique reference to credit reporting. This is done at a cost of some $80?? to the HOA.

If still unpaid (up to the HOA to notify the attorney), the law firm writes a letter saying a lien has been placed and foreclosure and credit reporting will commence and in order to stop the action dues must be caught up (to the HOA) and there is now an additional $495 legal charge payable to the law firm.

If still unpaid, the law firm then (no prompting by the HOA) writes a letter saying foreclosure has commenced and credit bureaus will be notified. The is also now an additional $1,250.00 legal charge payable to the law firm.

Our HOA has never been party to a foreclosure (about one a year) as we have never been able to economically justify such action.

One asks about social security numbers for credit bureau reporting, When we asked our law firm about it they replied: "we have our ways of obtaining them".

Thanks John
Agree that SS#s aren't that difficult to get. (Recently looked at someone's family tree on ancestry. Amazed how many SS#s were being published there.) Lawyers of course have better sources.

Our process starts somewhat similar to yours - A bit more costly per step, but not that much.

Step 1. Threat letter.
Step 2. Notice of intent to obtain judgment 30 days later.
Step 3. File and obtain personal judgment at Magistrate Court level.
Step 4. Use judgment to pursue sheriff's sale on vehicles.

Entire process costs somewhere around $800-1k.

Another avenue would be foreclosure on the property, but we've never gone that far. Only judicial foreclosures allowed in PA. Must be done at Common Pleas court level (not Magistrate Court). Can easily take a year. After that, would need to give the sheriff a $2k deposit to initiate the foreclosure sale process. Foreclosure can take 3-6 months. Like you, not economically viable.

I'm actually wondering if your lawyer is able to report the delinquency to the credit reporting agencies or is he just making the threat in his letters.

Our problem is that we've made the threats that we'll report, but we can't back those threats up with any action. If we could report, we're sure it would make a difference in collections.

Sikubali jukumu. Read all posts at your own risk.

NpS (Pennsylvania)
Posts: 4,216

Posted:

CORRECTED:

Quote:

Posted By NpS on 07/13/2016 9:16 AM

Thanks John
Agree that SS#s aren't that difficult to get. (Recently looked at someone's family tree on ancestry. Amazed how many SS#s were being published there.) Lawyers of course have better sources.

Our process starts somewhat similar to yours - A bit more costly per step, but not that much.

Step 1. Threat letter.
Step 2. Notice of intent to obtain judgment 30 days later.
Step 3. File and obtain personal judgment at Magistrate Court level.
Step 4. Use judgment to pursue sheriff's sale on vehicles.

Steps 1-3 costs somewhere around $800-1k.

Another avenue would be foreclosure on the property, but we've never gone that far. Only judicial foreclosures allowed in PA. Must be done at Common Pleas court level (not Magistrate Court). Can easily take a year. After that, would need to give the sheriff a $2k deposit to initiate the foreclosure sale process. Foreclosure can take 3-6 months. Like you, not economically viable.

I'm actually wondering if your lawyer is able to report the delinquency to the credit reporting agencies or is he just making the threat in his letters.

Our problem is that we've made the threats that we'll report, but we can't back those threats up with any action. If we could report, we're sure it would make a difference in collections.

Sikubali jukumu. Read all posts at your own risk.

SheliaH (Indiana)
Posts: 6,964

Posted:

Here's something I saw on Experian's website - hope this helps! I plan to bring this up with my own board:

Q. Can a credit agency post something on my credit report without my Social Security Number?

A. Yes, they can. Experian doesn’t match information to a person’s credit history using only the Social Security number. Experian matches information using all of the identification information provided by the lender, so the account will be accurately shown in your report, even if no Social Security number is provided.

In some cases, variations from the consumer’s correct Social Security number may be reported to Experian. Experian lists every variation reported to it. Any variations listed under “Social Security number variations” in your credit report are not errors. Instead, they are an accurate representation of all of the numbers being reported to Experian as belonging to you.

It is important to list the variations because they could indicate you are a victim of fraud or identity theft. In most cases they are simply the result of a transposed digit or typographical error. Some people may provide an incorrect Social Security number in the misbelief that doing so helps protect them from fraud. However, in some cases they are the result of identity theft. By listing the variations, we enable you to recognize fraud and take immediate action.

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius

NpS (Pennsylvania)
Posts: 4,216

Posted:

Quote:

Posted By SheliaH on 07/13/2016 11:19 AM
Here's something I saw on Experian's website - hope this helps! I plan to bring this up with my own board:

Q. Can a credit agency post something on my credit report without my Social Security Number?

A. Yes, they can. Experian doesn’t match information to a person’s credit history using only the Social Security number. Experian matches information using all of the identification information provided by the lender, so the account will be accurately shown in your report, even if no Social Security number is provided.

In some cases, variations from the consumer’s correct Social Security number may be reported to Experian. Experian lists every variation reported to it. Any variations listed under “Social Security number variations” in your credit report are not errors. Instead, they are an accurate representation of all of the numbers being reported to Experian as belonging to you.

It is important to list the variations because they could indicate you are a victim of fraud or identity theft. In most cases they are simply the result of a transposed digit or typographical error. Some people may provide an incorrect Social Security number in the misbelief that doing so helps protect them from fraud. However, in some cases they are the result of identity theft. By listing the variations, we enable you to recognize fraud and take immediate action.

Thanks Sheila. Am familiar with Experian and other credit reporting company procedures.

But the real issue for us is how we would get that information to Experian in the first place. (They're not going to accept a delinquency report directly from our HOA.)

If we turn it over to a collection agency, many of them have relationships where they report to Experian, etc. But collection agencies typically want 50% of what they collect. Way too pricey for us.

We're looking for a way to get the information reported prior to turning it over to a collection agency.

Sikubali jukumu. Read all posts at your own risk.

SheliaH (Indiana)
Posts: 6,964

Posted:

I suppose you could work with this company that’s partnered with CAI, but like you, I see no point in turning over all account information when you’re really interested in reporting the delinquent homeowners.

I did a little more googling, and it seems the other people who can report are collection agencies or collection attorneys, whom I would think would be just as expensive. It may come down to talking to collection agency directly to see if they could do some work for you for a negotiated fee instead of taking half of what’s collected. Part of that might include reporting the homeowner when they got the account – if they’re able to collect, hooray, if not and they return the account to you, the delinquency has already shown up on the report.

Once upon a time, I saw an ad for a company that reportedly specialized in this for HOAs (in fact, it may have been the same company that's working with CAI), but they weren’t in my state and seemed to work via Internet only (I would want someone with a street address whom I could meet face to face – after I did a few background checks on bonding, licensing, record with the BBB, reference checks, etc.).

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius

NpS (Pennsylvania)
Posts: 4,216

Posted:

Quote:

Posted By SheliaH on 07/13/2016 1:20 PM
I suppose you could work with this company that’s partnered with CAI, but like you, I see no point in turning over all account information when you’re really interested in reporting the delinquent homeowners.

I did a little more googling, and it seems the other people who can report are collection agencies or collection attorneys, whom I would think would be just as expensive. It may come down to talking to collection agency directly to see if they could do some work for you for a negotiated fee instead of taking half of what’s collected. Part of that might include reporting the homeowner when they got the account – if they’re able to collect, hooray, if not and they return the account to you, the delinquency has already shown up on the report.

Once upon a time, I saw an ad for a company that reportedly specialized in this for HOAs (in fact, it may have been the same company that's working with CAI), but they weren’t in my state and seemed to work via Internet only (I would want someone with a street address whom I could meet face to face – after I did a few background checks on bonding, licensing, record with the BBB, reference checks, etc.).

Good advice. Thanks Sheila.

Sikubali jukumu. Read all posts at your own risk.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Our lawyer says is in common practice for law firms to be able to ding/report credit issues. Fortunately we have not had to go that far. We found out the threat of anything from a law firm had much more weight (as in they paid attention) then any treat from any HOA BOD.

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