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Follow up: What happens when your Condo Association or HOA goes Bankrupt.

By
Real Estate Appraiser with Kathleen Bryce, Inc.

Sadly I fear that I was right.  The stories are just beginning.  Many Condo Associations are teetering on Bankrupcy and the same is for many HOA's. 

The following article was published in the local news Paper.

Foreclosures burden owners at Coral Lakes

Home and condo owners at the Cape Coral gated community Coral Lakes may have to pay $650 by year's end to offset expenses the association owes because of the number of foreclosed homes.

A meeting to decide if homeowners would have to pay the assessment ended without a decision Tuesday when the head of the association's board declared the meeting adjourned.

"Everybody here wants to point the finger at the developer tonight," said Jay Coughlin, who works for the developer Engle Homes, during the meeting when shouts from homeowners frequently interrupted his answers. "But look at your neighbor who owes $220,000."

Read the rest of the article...

Realtor's you owe it to your client to place them in communities that are healthy!

Kathleen Bryce
St.Cert.Res. REA RD4424
http://www.leecountyappraisals.com

Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
Pentagon, Fort Belvoir & Quantico Real Estate News

This is one of the consequences of the mortgage meltdown.  Add to the surprise "special assessments" you are also going to see higher monthly dues to cover the on going bills.  At some point the owners who are paying are going to scream uncle because not only do they own a condo worth far less than what they owe but the monthly condo expenses are not out of control. 

Dec 17, 2008 01:44 AM
Bill Gillhespy
16 Sunview Blvd - Fort Myers Beach, FL
Fort Myers Beach Realtor, Fort Myers Beach Agent - Homes & Condos

Hi Kat,  I've heard both ways.  One was that the remaining owners must make up the shortfall and the other relies on the homeowner docs to spell out how it id handled.

Dec 17, 2008 02:38 AM
Richard D. Ferris
AmcAppraisalsinc.com - Clermont, FL
Florida State Certified (FHA) Appraiser

Kat - how do you get a hold of HOA budgets?  Do you typically go to the HOA manager, developer, etc?  Are you able to do an analysis on the existing budgets to determine of they are in danger?

I would love to hear about your process when you are appraising a condo, as well as the condo project?

 

Jan 13, 2009 03:02 AM