Have You Stopped Paying your Home Owners Association Duesâ€¦.If so You Might Want to Think Twice.
When a home owner stops paying their dues it can affect the entire community.Â HOA dues are used to keep the community as a whole in top condition.Â They also go into a reserve account for emergencies.Â
When several home owners within a community stop paying their dues the HOAâ€™s funds get severely depleted. Â This can result in a lack of upkeep within the community that will eventually translate into lower home values for all home owners.
The thinning out of the reserve account can also cause a problem with lenders.Â All HOA communities must have a certain amount held in reserves to meet unexpected expenses.Â When the HOA doesnâ€™t have the required amount of reserves available it is viewed as risky investments for lenders.Â That means that lenders will not authorize a loan for the purchase of a home within the community until the community complies with reserve requirements.
Home owners associations are losing a lot of money due to delinquent dues and they are starting to fight back.
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