Your assessments cover your share of the expenses that the association pays to operate and preserve the property that you own. If you enjoy the amenities without paying for them, essentially you're asking your neighbors to pay your bills.
If you don't pay your assessments, you have an unpaid debt. Unpaid debts show up on credit reports.
Read your governing documents to determine the board's responsibility to collect this debt.
Usually, the board can file a lien on your title, and may even be able to sell your unit in order to satisfy the debt that you owe.
If you owe assessments that are unpaid, you are in violation of the financial agreement you made with the association. The association is required to pursue you to collect this debt. You can read your governing documents to remember your obligation to pay assessments, and understand the steps that your association will take to collect your debt. Your board can tell you whether or not this honest debt has been reported to a credit agency.
How do I report an unpaid bill to a credit bureau?
Unpaid traffic tickets are not reported to the credit bureaus.
An unpaid tax lien will remain on your credit report for 10 years from the date it's filed. A paid tax lien will remain on your credit report for seven years from its date of filing.
Like other late payments reported to a credit reporting agency, an unpaid medical bill may stay on a credit report for up to seven years.
Take them to court.
Operating fees -- assessments -- are paid by owners to support community expenses, such as insurance, basic utilities and so forth.Every association's governing documents detail the process whereby the association can pursue an owner to collect unpaid assessments.When the association files a lien on the title based on non-payment of assessments, the lien becomes public record and credit bureaus can include this in your credit rating.Whether the association chooses to report the non-payment prior to filing a lien is up to each board to decide.
Your governing documents define owners' responsibilities to pay assessments and boards' responsibilities to collect them. The association's counsel may have constructed a 'blanket' lien for past due assessments. Details are critical in matters such as this, however. Board members and owners are encouraged to work with association's counsel to pay the unpaid assessments and settle the matter. Clear title is important at time of sale, and is important insofar as an owner's credit report/ record is concerned. An owner interested in contesting such a lien is required to hire their own counsel and disagree at their own expense.
Yes. Some institutions/businesses do not report to credit bureaus. The debt not being placed on a credit report does not mean it is not completely valid and collectible.