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Interesting Topic on DRI Members Forum

F

fluke

TUG Member
Joined
Sep 12, 2010
Messages
552
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Location
Illinois
I was reading on the DRI members forum and ran across this response to a question about nonpayment of HOA fees and Loan repayment. They
first addressed what would happen on default:

"Yes, if a contract is in default, either due to unpaid maintenance fees/club dues, or loan (mortgage) payment, then this would effectively terminate the contract in question."

This was a discussion about surrendering points - that is the "contract being terminated".

Then a question was posed about other than losing the points what could happen. This was the response:

"Defaulting on a contract due to nonpayment of loan and defaulting on a contract due to nonpayment of HOA dues (Maintenance Fees) are two completely different situations. If you happen to default on your contract due to nonpayment of your loan, then your credit rating would definitely be effected. Whereas if you happen to default on your contract due to nonpayment of your HOA dues, then your credit rating would most likely be effected. In this situation, the decision, whether or not this delinquency is reported to the credit bureaus, is up to the Home Owner's Association Board of Directors, where your contract is tied to. I would refer to your "Promissory Note" for further information about your loan, and consequences for nonpayment, and refer to your "Purchase and Security Agreement" for further information about your HOA dues."

These responses were cut and pasted.
 
fluke said:
I was reading on the DRI members forum and ran across this response to a question about nonpayment of HOA fees and Loan repayment. They
first addressed what would happen on default:

"Yes, if a contract is in default, either due to unpaid maintenance fees/club dues, or loan (mortgage) payment, then this would effectively terminate the contract in question."

This was a discussion about surrendering points - that is the "contract being terminated".

Then a question was posed about other than losing the points what could happen. This was the response:

"Defaulting on a contract due to nonpayment of loan and defaulting on a contract due to nonpayment of HOA dues (Maintenance Fees) are two completely different situations. If you happen to default on your contract due to nonpayment of your loan, then your credit rating would definitely be effected. Whereas if you happen to default on your contract due to nonpayment of your HOA dues, then your credit rating would most likely be effected. In this situation, the decision, whether or not this delinquency is reported to the credit bureaus, is up to the Home Owner's Association Board of Directors, where your contract is tied to. I would refer to your "Promissory Note" for further information about your loan, and consequences for nonpayment, and refer to your "Purchase and Security Agreement" for further information about your HOA dues."

These responses were cut and pasted.
Click to expand...

Interesting as you say,,,but not surprising. Foreclosures are a matter of public record, and the credit bureaus look at public records... thats why the author used the word definitely.
 
ronparise said:
Interesting as you say,,,but not surprising. Foreclosures are a matter of public record, and the credit bureaus look at public records... thats why the author used the word definitely.
Click to expand...

Sorry, actually what I meant by interesting was it seems that not paying your MFs may be the easy way out of the DRI Trusts since it is hard to even give them away.

Of course that has been suggested before on this forum. But it was interesting to see it on DRIs own very controlled member forum. Nothing gets posted there without being approved by DRI first.
 
robcrusoe said:
Not being familiar with the DRI Member Forum, is a response from another member or someone in authority at DRI???
Click to expand...

It is the forum on the DRI web page. It has official DRI moderators, that is who I quoted.


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If you are a DRI member you can access the member forum on the main web page. It is in a list on the bottom left. If you can't get the forum to open you may have to add web page to add the website to your automatic compatibility on your browser.


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