The devaluation of condominiums in Florida is proving catastrophic for even the saviest real estate investors. Real estate investors who purchased condos with huge down payments are now upside down and stuck with hefty special assessments sometimes quadrupling an investors annual costs. Now what do those investors do? Do they continue pouring their life savings into special assessments into a toxic asset that is continuing to lose value. I am amazed that there has been no help by Fannie Mae or Freddie Mac to step in and help the quickly sliding condo market. The major issue with condominiums in Florida is the risk of investing with other non-paying homeowners and then the financial ramifications of falling property values and special assessments. (this process is magnified in condominiums due to the lack of financing) Government legislation; both local and national, needs to step in and reform laws limiting losses of homeowners due to the failure of other homeowners to keep their HOA/maintenence fees current. If these laws were reformed, the major loan agencies would feel less threatened and so would their investors, thus opening the approval process of Fannie/Freddie to more "condominium" communities. Thus slowing the plumetting condo values. The only communities maintaining values somewhat are those that have a PERS approval(Fannie/Freddie) or a HUD approval.(FHA)
DJ Rondeau
Bay to Bay Lending, L.L.C.
501 South Dakota Ave, Suite 2
Tampa, FL 33606
813-489-5562- Office
813-480-6077- Mobile
813-464-2867- Fax
djrondeau@baytobaylending.com
www.tampafloridamortgagebroker.com
NMLS Originator ID: 218498
Comments(2)