HOA Dues in North Carolina and Why Paying on Time Matters
Buying a home comes with plenty to keep track of. Your mortgage, insurance, utilities and the list of things you suddenly need from the hardware store. If your home is in a homeowners association, add HOA dues to that list. Knowing what you owe, when it is due and how to pay it is part of protecting your home. Because “I thought that was included in my mortgage” can become an expensive misunderstanding.
Are HOA dues included in your mortgage
HOA dues are generally paid directly to the association or its management company, separately from your mortgage payment.
Some mortgage servicers may agree to escrow HOA dues, but that is uncommon. Unless your servicer has specifically confirmed that arrangement, plan to handle the payments yourself.
An HOA amount appearing in your loan paperwork or being included in your lender’s affordability calculation does not, by itself, mean the lender is collecting and paying it.
Before closing, ask who you will pay, how much you will owe and when your first payment is due. Then confirm those details with the HOA or management company.
Know your payment schedule
Every association has its own payment schedule. Yours may collect monthly, quarterly or annually. Follow your association’s actual due dates.
For example, if your dues are $900 per quarter, setting aside $300 each month can help you budget. But sending $300 a month does not automatically satisfy a $900 quarterly bill. Confirm whether the association accepts that arrangement.
Your budget schedule and the HOA’s payment schedule need to work together.
Set up autopay and keep an eye on it
If autopay is available, I recommend setting it up. You have enough dates to remember.
But give it a little supervision. Check that the first payment goes through, review your account periodically and update your information when your bank account or card changes.
If your dues increase, confirm that your automatic payment adjusts. A fixed bank bill payment may keep sending the old amount until you change it.
Also, keep your mailing address and email current with the association, especially if this is a second home or rental property. You need those notices reaching you.
What happens if you do not pay HOA dues in North Carolina
Unpaid HOA assessments can lead to collection costs and a lien against your property. In some circumstances, an association can pursue foreclosure under North Carolina law.
Yes, foreclosure. This is serious business.
There are legal notice requirements and procedures involved. A missed payment does not mean your home is immediately headed to foreclosure, but ignoring an overdue balance can allow a manageable problem to become much more expensive.
Paying your mortgage on time does not resolve a separate unpaid HOA balance.
What to do if you fall behind
Contact your HOA or management company as soon as you know there is a problem. Ask for an itemized account statement so you can see the assessments, payments and any additional charges.
If you believe a payment is missing or a charge is incorrect, provide your records and ask for a written explanation.
If you need a payment plan, ask whether one is available. Do not assume the association is required to offer one or that a partial payment stops collection activity.
If you receive a lien or foreclosure notice, contact a North Carolina attorney promptly. That paperwork needs attention.
Before you buy a home with an HOA
Ask about the current dues, payment frequency, what the dues cover and any approved special assessments. Review the association documents and financial information available to you.
Make room for the dues in your housing budget, and remember that the amount can change.
Whether you are buying in Bolivia, Southport, Oak Island or elsewhere in Brunswick County, understanding the HOA is part of understanding the home.
My advice is simple: know what you owe, set up a reliable way to pay it and check that it gets paid.
The more you know, the better you can protect yourself and your home.
Kim Cotton, REALTOR®
REMAX Southern Coast
Keeping it Real Estate.
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