Credit reporting agencies see an incredibly lucrative opportunity in Homeowners Associations. And corrupt HOA boards see a marvelous way to further harass homeowners who dare to fight back against the Lawn Nazis. Hold back your dues because your HOA is doing something blatantly illegal, and it’ll lower your credit score.
Hire a lawyer to fight back against an unjust fine or lien, and yup, you might not be able to get that car financed or that mortgage modification approved.
These fundamentally unconstitutional institutions (try saying that three times) have found a new way to hammer beleaguered homeowners. It’s beyond belief, and it very well could end up contributing to the coming collapse of the HOA housing market. The more you learn about HOA abuse, the lower go the property values in HOAs. Developers, government agencies, embezzling management companies and abusive board members love seeing this happen. It’s more money in their pockets which means less in yours.
(the credit reporting HOA goliath)
If HOA financed assessments might be considered “credit transactions” by credit reporting agencies, then should HOAs comply with Truth in Lending Act TILA?
TILA requires financial disclosures, while prohibiting non-judicial foreclosures and forced arbitration.