Today in the Miami Herald, http://www.miamiherald.com/ one more problem is taking front page for South Florida condo owners. It seems that an increasing number of condo owners are not paying the association fee, this put the remaining owners in a very tight squeeze. In a very extreme case 90% of the owners are not paying their fees. This has caused the associations to cancel services, postpone maintance and in some cases drop insurance coverage.
The result is the fees are increasing to the remaining few to the point that current owners are not able to keep up with payments and defaults to this group are increasing, creating a new wave of non-payments and forclosures. The article stated that some banks are even failing to pay the fees, Florida law states that the banks are responible for fees for both the curent as well as the past fees up to 1% or six months which ever is less.
The lack of fees is lowering the value of the condos accross the board for both the condo owners and the banks as well. It is very important to maintain values for everyones benefit. It is also important to act quickly to stop the losses and turn the situation around as soon a s possible.
I maybe wrong in my logic but it seems to me that the association are better forclosing and stop the bleeding of non payment of fees within 6 months or sooner. This way you at least have a chance of the new owner paying the fees, and if they do not pay it is back to forclosure again until you find someone that will pay long term.
Am I correct in this logic? Am I missing something between the lines?