Most public records will show when a property was purchased, what it was offered for and what the final sale price was. It will also show you if there is one or more mortgages, when they were taken out and for how much. Many condos that were built between 2005 and 2008 were not able to sell out completely and be turned over to a homeowners association. Many were sold for hundreds of thousands of dollars more than they will ever be worth in today's or probably tomorrow's market. The owners look at their debt and realize that they are filling a black whole. No matter how long they pay their mortgage they are still not going to have any equity in their property. So, they dump it and move on. Today's economic environment not only allows this but supports and applauds it.

I would see when the condo was built. Were all the units sold by the developer prior to the warranty on the building running out? If the original builder's warranty has expired then it will be very difficult to get financing. Each locality has a different percentage of sales that must take place prior to a homeowners association taking over. Check and see if the association is in charge or if it is still in the hands of the developer. This will speak volumes on what is going on with the building.

If the building is older than three years and not in the situation I mention above I would suggest you go to the City Planning office and ask questions as to what development may be in the works for the area. The other thing you can do is go to Public Records and look at the Property Tax Records. It will show the address and entire purchase record including mortgage information.

I hope this has been helpful.

It may be a combination of both. On one hand, the buyers may have used subprime loans with adjustable rates to purchase their unit from the developer (assuming the complex is a recent rehab or newer construction). Two to 5 years later, their payments go up (due to adjusted interest rates, higher assessed property taxes, and/or increased assessments) AND they can't refinance because their unit is worth less. In which case, they either TRY to sell in short sale and/or they cut their loses and allow the property to go into foreclosure.

However, there are many situations where amature/inexperienced developers sold low quality units in the last 7 or so years and their buyers are now finding that out for themselves. Some unit owners will cut their loses rather than paying any special assessment to remediate the problem. Remember, if its a new/er rehab/conversion/construction, they likely have to contend with higher property taxes, regular assessment increases and probably even higher interest rates IN ADDITION to a special assessment.

The best way to find out if these issues exist in a complex is to talk to the association or management company. Your agent may be your best resource to get you information.

If you don't have one, feel free to call. 312.927.3971. I have tons of experience with short sales and foreclosures.

Are those condos owned by separate individual owners, or was it perhaps a group or block of condos owned by an Investor or Corporation?


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Thanks,
Fred
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