I quit my job & it seems like the HOA/mortgage lender have options , how poor of a financial position am I in?

Started by DanielleG4 • 25 replies • 558 views

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DanielleG4 (Florida)
Posts: 131

Posted:

-Quit my job earlier this week with a little over 5k saved up
-My biggest bills are my HOA fee and mortgage. Mortgage loan is on deferment up to 6 months due to covid & HOA office can postpone monthly payments. I’ll still be charged but no late fees and will have payment plan once I’m ready to start paying again.
- I also paused my home warranty (can go 3 months without having to make payments, then would have to pay in full once I’m ready)
-My remaining bills would be car insurance, electricity, food, gas etc

My ex job will still owes me a paycheck (71 hrs worth)…is this doable?

JohnT38 (South Carolina)
Posts: 1,631

Posted:

Quote:

Posted By DanielleG4 on 08/30/2021 6:44 AM

-Quit my job earlier this week with a little over 5k saved up
-My biggest bills are my HOA fee and mortgage. Mortgage loan is on deferment up to 6 months due to covid & HOA office can postpone monthly payments. I’ll still be charged but no late fees and will have payment plan once I’m ready to start paying again.
- I also paused my home warranty (can go 3 months without having to make payments, then would have to pay in full once I’m ready)
-My remaining bills would be car insurance, electricity, food, gas etc

My ex job will still owes me a paycheck (71 hrs worth)…is this doable?

Is there an HOA related question in this?

DanielleG4 (Florida)
Posts: 131

Posted:

Yes look at the title. How much does a mortgage forbearance affect you? They said loan modification or payoff is possible, and yeah the HOA may provide a payment plan

JohnT38 (South Carolina)
Posts: 1,631

Posted:

Quote:

Posted By DanielleG4 on 08/30/2021 7:17 AM
Yes look at the title. How much does a mortgage forbearance affect you? They said loan modification or payoff is possible, and yeah the HOA may provide a payment plan

Your question was "how poor of a financial position am I in?" You quit your job and you only have $5,000 saved up. If you want my honest answer then it is you are in trouble and playing with fire. However, without knowing what your other bills are and what unexpected expenses could arise in the near future I honestly don't know what kind of answer you are expecting. Suppose the transmission goes out on your car? If you no longer have insurance what happens if an unexpected medical expense happens? How much do you spend on utility bills, food, etc?

I would not be looking for financial advice on an HOA forum.

AugustinD
Posts: 3,698

Posted:

DanielleG4, I agree with JohnT38 that this is a financial planning question more than anything else. Even if this were a financial planning forum, saying anything all that intelligent is not possible without seeing your monthly expenses. Still, human being to human being, and since I have a disabled sibling whom my family, others (god bless 'em) and I watch closely, in case the sibling needs help navigating the bureaucracy:

If at all possible, seek new employment immediately. Because the hassle of arranging for either government welfare or generosity from one's creditors (utilities, banks, HOA et cetera) is large and often requires a lot of smarts.

You can certainly see if you qualify for food stamps in Florida. This could help a lot, especially since many states have substantially increased food stamp allowances during the pandemic. You should check to see if you can get a (bigger?) subsidy for health insurance or get on Medicaid.

DanielleG4 (Florida)
Posts: 131

Posted:

I mean the HOA told me to write a letter explaining my situation and he would get back to me once he spoke with the board. And the mortgage lender said to call and request, I wasn’t told of any other documentation I’d need to provide…

CathyA3 (Ohio)
Posts: 6,299

Posted:

None of us here can answer that since the answer depends on a lot of things that we don't know. You'll have to ask the HOA and lender what your options are for those particular debts, but it's up to you to figure out what those mean.

Otherwise, you should look for websites that provide financial advice. My advice (and this applies to anyone): If you're not in a position to survive without regular income, you should probably try to find regular income, and any income is better than no income.

HenryS6 (Arizona)
Posts: 111

Posted:

To be very clear:

Your HOA may allow dues to pile up for a while and then give you the option to pay them back on a payment plan, however, you will still have to pay them. They won't waive the dues for you.

It's a pay me now or pay me later situation.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Quote:

Posted By HenryS6 on 08/30/2021 9:17 AM
To be very clear:

Your HOA may allow dues to pile up for a while and then give you the option to pay them back on a payment plan, however, you will still have to pay them. They won't waive the dues for you.

It's a pay me now or pay me later situation.

I agree. Pay them now or pay them later but you will have to pay them.

MelissaP1 (Alabama)
Posts: 13,836

Posted:

Do you want the added expense of legal fees they add on for collections? Plus let us not forget how bad credit makes your bills go up.

The question is are you just bragging about your financial lifestyle choices?

Former HOA President

DanielleG4 (Florida)
Posts: 131

Posted:

But they’re saying that if I’m approved for the payment plan, I may not have any other late or legal fees assessed. What’s to brag?

CarissaM
Posts: 119

Posted:

I don't know of any options an HOA would allow but working on a payment plan.

Will they waive late fees and interest? Possibly. For how long? Not sure.

This is certainly none of my business but if you quit your job, don't you intend to find another? I mean, these seem like potentially short issues to resolve right?

TimB4 (Tennessee)
Posts: 21,059

Posted:

Quote:

Posted By DanielleG4 on 08/30/2021 6:44 AM

My ex job will still owes me a paycheck (71 hrs worth)…is this doable?

I suspect if you didn't defer mortgage and HOA fees, you would only last 1 to 3 months without additional income.

Keep in mind, as others have said, after the deferment on the mortgage your credit rating may take a hit and you will need to pay what is due or risk losing your home. So you can't really plan on spending everything you have.

Some concerns:

Health Care (the exchange still costs some money)
Did you allot food, medications, vehicle upkeep, auto/property insurance, entertainment (movies,cable,internet), etc. into your equation?

What can work for one, may or may not work for another.

Personal opinion, despite the deferments, set aside the money as if you had to pay them when they were/are initially due. Once you calculate your other needs then you will know how long you can last without changes (new job, new place to live, loss of entertainment options, etc.).

Only you can determine what your financial position is.

Hopefully, this info helps.

MelissaP1 (Alabama)
Posts: 13,836

Posted:

Yeah I am not into those "deferment" programs. The most our HOA would do is allow you to pay half your dues that month and we may not add the late fee. This was ONLY to avoid a lien at the 6 month period when we filed them. If you made attempts to pay in that 6 months we were less likely to file a lien. However, if you just plain out did not attempt to pay or make arrangements, you got the full lien at 6 months.

The OP also needs to understand the HOA can decide to file a lien at some point. When that happens, they will not only owe their back dues but all the legal/collection expenses of the HOA. Typically it's about a $500 in ADDITION to the back dues owed. Also a lien hits your credit. Doesn't allow you to sell your home till it's paid. So deferring HOA payments are most likely going to bite you hard in the end.

Mortgage deferment programs aren't necessarily doing anyone any "favors" either. They look good on the surface but in the long term set you up for debt/failure. It's going to again hit your credit score.

Why is your credit score so important? It effects so many aspects of your life you may not see or know yet. I recently moved. Had to change utilities companies. The new Utilities charged a $275 hook up fee UNLESS you had a credit score of above 650. The choice was to pay this or let them pull your credit score to only pay $30.

Car payments alone were eye opening to me. I always thought those TV commercials with "0 %" interest or no payments for 6 months deals applied to everyone. They don't. Matter of fact only 1 - 5 % of people qualify for those type of deals. The reality is your probably going to be charged 20% + interest. If you had good credit the interest rate can be as low as 0 %.

This is just a few examples of why you need to take your finances seriously. Taking advantage of these programs means later in life you will have no choices at all but to stay in programs the rest of your life. Ones that don't let you defer debt but live in it...

Former HOA President

MaxB4
Posts: 3,513

Posted:

Quote:

Posted By MelissaP1 on 08/30/2021 3:59 PM
Also a lien hits your credit.

IF HOA don't have someone's social security number, how is their credit affected? I know I don't report past due accounts to any credit reporting agency, wish I could though. If you have some insight into this, please share.

MelissaP1 (Alabama)
Posts: 13,836

Posted:

You have to report if you have any liens against you.

Former HOA President

MaxB4
Posts: 3,513

Posted:

Quote:

Posted By MelissaP1 on 08/30/2021 4:18 PM
You have to report if you have any liens against you.

Who reports it, the person who has the lien against?

MaxB4
Posts: 3,513

Posted:

Quote:

Posted By MelissaP1 on 08/30/2021 4:18 PM
You have to report if you have any liens against you.

You do realize that tax, judgements and mechanic liens are no longer included in the three credit bureau reports?

SheilaJ1 (South Carolina)
Posts: 291

Posted:

Chapter 13 or Chapter 7 should stop the arrears and put you on a mortgage repayment plan if you’re behind.

TimB4 (Tennessee)
Posts: 21,059

Posted:

Quote:

Posted By MaxB4 on 08/30/2021 4:06 PM

Posted By MelissaP1 on 08/30/2021 3:59 PM
Also a lien hits your credit.

See:

Accounts Reported without Social Security Number from experian

Even with no SSN, unpaid debt can ruin your credit

Information About Credit Reporting without a SSN

TimB4 (Tennessee)
Posts: 21,059

Posted:

Quote:

Posted By MaxB4 on 08/30/2021 4:26 PM

Posted By MelissaP1 on 08/30/2021 4:18 PM
You have to report if you have any liens against you.

You do realize that tax, judgements and mechanic liens are no longer included in the three credit bureau reports?

This is correct.
They used to be reported but no longer are.

See:

What Is a Lien? from experian.

TimB4 (Tennessee)
Posts: 21,059

Posted:

I remember when posters to this site used to always provide the basis for their statements. It helped everyone learn.

SheliaH (Indiana)
Posts: 6,964

Posted:

Quote:

Posted By TimB4 on 08/31/2021 1:00 AM
I remember when posters to this site used to always provide the basis for their statements. It helped everyone learn.

So do I, but alas, it seems those days are gone. Today, people are more interested in being RIGHT, rather than applying careful thought to the issues and they certainly don't bother to even listen to the other side (sometimes there are more than one). No wonder we can't seem to get a lot of things resolved in this country, starting with COVID.

As for this conversation, I'm wondering why anyone would just quit their job without having something else on the horizon (I was always taught that was how it's supposed to go because it's easier to find another job/better job when you already have one). It also seems to me the OP doesn't have much in the way of savings and what she's really asking is f the board would be leinent towards her because the mortgage company, et. al., seem to be doing the same thing.

As a former board treasurer, I'd start with what her current plans are regarding income and look at her history as far as paying assessments. Have they been paid in full and on time since she's been a homeowner? What are her plans as far as her income is concerned - if she's planning to use the $5K in savings, that may or may not last very long. And why did she quit her job anyway - it's one thing if she did it to become a caregiver for a sick loved one, but if she did this on a whim, I might say I don't know or care what you do regarding income, but I expect regular assessment payments to continue. So if you want us to give you options, you need to explain more about your situation.

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

MelissaP1 (Alabama)
Posts: 13,836

Posted:

May I also note why would an HOA offer any type of deferral programs to anyone? Dues are INCOME to an HOA. They pay their bills with that money.

Also I would not be tempted by all those hyped up commercials I hear on TV or Radio about some kind of special program for mortgages. I am sure that is what the OP is referencing. Those programs are not what you think they are.

I just have a gut feeling on this one that the OP is trying to take advantage of things because they think they are available to take. I do not support the ideas and plans of not paying ones bills and no job.

Former HOA President

CathyA3 (Ohio)
Posts: 6,299

Posted:

Payment plans can work well for those with a short term issue that gets resolved. In my experience, they do not work at all for those who have a more serious issue that won't be resolved easily: chronic unemployment or a bad attitude that leads them to stop paying to "punish" the HOA.

The only reason to offer payment plans to the latter group is to make sure the association is ticking all of the boxes with an eye to eventual foreclosure (so the association can prove that it bent over backwards to resolve things but the owner was uncooperative).

To speak to the OP's question, a person can have "options" and still be in a lousy position: trashed credit for one thing, making it harder and more expensive to buy things in the future or to even rent an apartment. And employers also look at stuff like that - if they're choosing between two equally qualified candidates, the one with a history of financial problems will at least have a question mark over their head which can make the employer offer the job to the other person. (I have no opinion on whether this is right or wrong, only that it happens.)

There can be good reasons to quit a job - dangerous working conditions, abusive situation, personal or family emergency - but it's never ideal and will have financial repercussions, sometimes permanent ones. A person with few resources and financial obligations who quits in a snit needs to wake up and smell the coffee, as a famous advice columnist used to say. Fortunately there seems to be no end of gig jobs nowadays that can at least bring in a few bucks while a person looks for more permanent work.

BenA2 (Texas)
Posts: 1,273

Posted:

Obviously, the best thing is to always stay current on your bills but if that is not possible you should take advantage of any benefits you can get. My advice is to be honest and open with your HOA. They have payment plans because they realize it is not a perfect world and everyone comes out better if you are not adversarial. Every HOA is different though, so make sure they will waive the late fees before you enter into any agreement.

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