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WHAT HAPPENS IF THE CONDO ASSOCIATION GOES UNDER?
"WHAT HAPPENS IF THE CONDO ASSOCIATION GOES UNDER?"
That was a question from a home buyer yesterday.  This is a cash buyer in the market for a condo in Prince William County to use as rental property for a few years and then live in when he sells his present home. 
THE QUESTIONS WERE PROMPTED BY THE LISTING REPORT.  There are three properties offered for sale in that community, two short sales and one regular home owner sale.  One of the short sale listings wants "Cash Only, too many distressed sales for financing.  Condo assn. in trouble" 
HOW CAN THE CONDO ASSN. PAY THEIR BILLS?  The buyer's question is well founded since, under normal circumstances, when there is a high percentage of delinquent owners, the condo fee will be raised for remaining owners to cover condo expenses.  Maintenance of condo buildings, trash removal, grounds maintenance, snow removal, insurance, etc. are critical to protect the value of the property. 
WHAT DOES "Condo assn. in trouble" mean?  Condo associations are required by law to maintain certain "reserves" to protect the owners under special circumstances or a dramatic increase in expenses OR a high degree of delinquencies.  As delinquencies increase, the remaining owners will have to pay higher fees ... more

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