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Old 06-23-2011, 08:48 AM
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Originally Posted by skids929 View Post
I am pretty sure if you don't pay your student loans they can garnish your wages, take your tax returns and embarrass you at your place of employment..I consider that pretty bad.

Your HOA dues should be factored into to your overall mortgage and viewed as part of your mortgage the day you sign, most people do it this way. If not then and they lose their home because they can't pay HOA dues and can pay their mortgage it's their fault really.
Student loans and other conventional loans are "backward looking debt". You borrowed money for the education. There is a principal balance, interest rate, term, which dictate the monthly payments and how many will have to be made. There is a sum certain that can be paid at any time that will result in elimination of the debt.

In contrast, HOA assessments are "forward looking". The homeowner did not incur debt, the HOA corporation incurred it. The homeowner has little control over the debt that the HOA racks up. The HOA seeks to pay for its debt by assessing the homeowners. There is no "principal balance" or term. As long as the HOA exists, it will continue to run up expenses. The HOA assessments are perpetual. Homeowners are burdened by a lien securing payment of future HOA assessments which last into perpetuity. There is no sum certain that the homeowner can pay to terminate the lien even though the debt has yet to be incurred. HOA assessments are more akin to illicit taxes by a corporation that has not been delegated governmental taxation authority.

A note on a house (or anything else) can eventually be paid off. HOA assessments are ever-increasing and never ending. HOA assessments are never "done". Comparing HOA assessments to a loan is a red herring and nothing more than misdirection.
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