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Diegocentric

San Diego Real Estate, Community and Lifestyle

By Christa Borellini | Agent in San Diego, CA

How HOA's are Fighting Back Against Home Owners Who Stop Paying Their Dues

Have You Stopped Paying your Home Owners Association Dues….If so You Might Want to Think Twice.

When a home owner stops paying their dues it can affect the entire community.  HOA dues are used to keep the community as a whole in top condition.  They also go into a reserve account for emergencies. 

When several home owners within a community stop paying their dues the HOA’s funds get severely depleted.  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.  All HOA communities must have a certain amount held in reserves to meet unexpected expenses.  When the HOA doesn’t have the required amount of reserves available it is viewed as risky investments for lenders.  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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