Unpaid Dues Could Mean Foreclosure

By Jennifer Pierce, NEWS 9

OKLAHOMA CITY --  Unpaid homeowners' assocaition dues could cost some residents their homes.

Georgie Rasco runs The Neighborhood Alliance of Central Oklahoma. She said she has seen an increase in the number of residents who do not pay their homeowners' association dues.

"Fortunately we don't have the housing market problems that a lot of the other parts of the country do. Unfortunately, we still do have a lot of people that are unwilling or unable to pay their homeowners' association dues," Rasco said.

The dues are used to maintain neighborhood streets, pools, parks and landscaping. Without the money, homeowners' associations cannot afford the upkeep and are turning to an alternative.

"That means if you don't pay your dues, they have a responsibility to make sure that you do. Just like the bank does on your home, they will put a lien on your property if they have to," Rasco said.

Rasco said she has not heard of many homeowners' associations that have forced foreclosures locally. She said the Metro associations are trying to avoid the court system.

"If in the past they have always required, let's say the $400 annual dues, payment in February in a lump sum, maybe this year they are offering people to pay it monthly or the ability to take credit cards," Rasco said.

And for many associations, if the money still does not come in, they are raising dues. Home buying experts advise buyers to research a neighborhood's homeowners' association just as much as they would do research on the house they are considering buying. That way, a buyer will know what they are getting into and the consequences before moving in.

To find out where dues are going in a particular neighborhood, contact the homeowners' association president of board member.