Why would you stop paying your HOA fees? It will definitely affect your credit. I am sure they will report it to the credit bureaus and also have the ability to put a lien on your property. If you are having difficulty you can call them and try to make some arrangements. But to just stop paying them is not a good idea. Hope everything works out for you.
Robert McGuire ASR
Your Castle Real Estate
Direct - 303-669-1246
A bad credit score is so common now that you are not in the minority.
If I had the choice of paying $50K for nothing or having a bad credit report for a few years...I'd keep my 50K
The HOA and other creditors form a line at foreclosure. You have several options available to you in Colorado. The first should be to speak with a HUD counselor. You should do this whether or not you have an FHA loan. Get the certificate from the HUD counselor, and if you are considering a short sale, take your Realtor with you. Depending upon the action(s) you are going to pursue, of which there are several, you can decide if paying the HOA or any other fees make financial sense for you. Should you decide upon a short sale which is agreeing/negotiating to sell for less than you owe, you want to consider what happens to your credit after the timeframe of the credit hit. You can get back into the market quicker if you protect your credit. For the time you are in credit distress, keeping your score as high as possible will most likely improve the interest rates charged for credit cards and auto loans.
We know this is a difficult time for you, so getting good sound and objective advise from the correct professionals is paramount o forming your exit strategy from the house. I know I didn't answer your HOA payment question, but I don't have the full picture to give you that advise.
The HOA can put a lien on your home for the past due amounts owed to them. Here is a great page you should read from the Condo Association Management Blog this is just a clip from it:
Notice of Intent to Lien.
The Notice of Intent to Lien is normally sent to the delinquent owner by the management company or, if the Association is self-managed, by the Association Treasurer. It serves as both a warning regarding the imminence of liening the unit and the final non-legal request for the co-owner to become current in payment of his assessments.
To read more go to: http://www.condoassociation.com/blog/tabid/19257/bid/9229/Co
Kathy weigh all of your options and make the best most well informed decision, good luck!
Let me know!!!
As previously stated, if you have an issue with your HOA it should be handled through a real estate attorney. The lack of payment will most certainly impact your credit and can result in a lien against your property. In Colorado, HOA dues take the position of a "super lien" for the most recent 6 months, so the HOA must be paid prior to any other creditors in the event that you were to default on other obligations as well.
If I was you, I would definitely pay my HOA fees -
Yes, it will affect your credit score and
Yes, most HOAs can place a lien on your property and foreclose on your home due to lack of payment - read your HOA document and it will spell out what HOA will / can do if you don't pay the HOA fee.
If it's like previous answer where you might have disbute with HOA - there are other ways to resolve the issue rather than not paying HOA fees - get an attorney for that if you need advise....
In my non attorney opinion, that would be the last thing I would stop paying. If you're losing your house, maybe it doesn't matter. If you're going to sell it short, then you need to keep new liens off of it. I believe you should do everything possible to pay your HOA dues. Definitely call an attorney for advice. Hopefully, I am reading more into your question then what's there. Maybe you're just having a dispute with your HOA. I wish you the best of luck.