1099MISC to Home Owner's Associations - We are a mortgage servicing company. When loans become delinquent we often are required to pay the Home Owner's Associations dues. As a result of paying those dues our servicing sytem generates a 1099-MISC to the HOAs. It has always been our business practice to send a 1099-MISC to HOAs, but because we have more defaulted loans we are getting a lot more calls from HOAs saying we shouldn't be reporting "Non-Employee Compenstation" for HOA dues we paid to them. Our stance, based on the IRS instructions is, "Non-Employee Compenstation is a payment made to someone who was not our employee for services in the course of our trade or business." Are we OK reporting these amounts on the 1099-MISC or are we mis-understanding something