When a condo developer goes into bankruptcy, owners of previously sold units can be left with some troubling questions.

Here are the answers to a few of them:

· If the lender buys title to the property at the auction sale, a frequent occurrence, the law considers the lender just like it does other owners and requires that the lender pay the monthly assessment.

· The lender who buys the units also would be responsible for the taxes on the units he owns. 

· A clubhouse or similar property would be jointly owned by all the owners of all units and taxed as part of the value of those units.

Some of these developers fail even before the Home Owner's Association is even fully formed.  The above answers still apply even in those cases.

Houston has had its share of developers with issues and though they can be tricky, with the right advice from your real estate professional, you can find them to be a great value.  These homes for sale in Houston's Montrose and Heights don't just sport a great location but also an excellent value. Check out the affordable homes currently for sale in Montrose! Contact your real estate agent for help and advice.

Source: Charlotte Observer (05/2010)