What is going to happen to the values of condominiums when the homeowners association goes bankrupt? We hear about foreclosures, but those are just the tip of the iceberg. As developers begin to walk away from unfinished communities, or refuse to continue to contribute to the HOA many condo owners are going to be facing enormous costs to continue to maintain their common elements.
Is your appraiser examining the condominium budgets or doing the research necessary to determine if there is any pending or ongoing litigation? Make sure your buyers are getting a sound investment and look carefully at not only the condo, and it's market but the health of it's Association.
News-Press.com
Condos cause conundrum
By DICK HOGAN • dhogan@news-press.com • September 25, 2008
Unit owners resist paying extra expense
Buzz up! The developer of half-built Prentiss Pointe at Winkler and Summerlin roads in south Fort Myers wants the 50 condo owners to pay for all the community's operating expenses.
They're fighting back with protests to the state Division of Condominiums, saying that developer Prentiss Pointe Ltd. is obligated to pay its share of the expenses.
Gary Howe, managing partner of Prentiss Pointe, couldn't be reached for comment but condo owner Marilyn Boyer - who has the only non-developer seat on the condo association board - said he's told residents he's broke and can't pay. Click here for the rest of the story
Kathleen M Bryce
St.Cert.Res.REA RD-4424
http://www.leecountyappraisals.com
appraiserkat@earthlink.net
Kathleen "Kat" Bryce
;)
;)
Hi Katheen
There are two questions here with today's market conditions. First if a new condominium building goes bankrupt with unsold units. In bankruptcy court the real estate taxes have to be paid for all the unsold units, a mortgage holder will bid and buy the assets and the other entire lien holder are out. Once the bank owns the building they will responsible to paid the expenses from that point for the units they now own which would include taxes and HOA expenses. The developer can also do a special assessment for the short fall. Regarding a resale building the HOA has a budget in the event of a short fall or additional expenses as we have seen with the hurricane damage the HOA will do a special assessment. I hope this helps you.
Good luck and success
Lou Ludwig