This is an interesting thread as I have been looking for a condo in this area and have heard about the condo association fees. What exactly are the risks for a buyer of such a condo. Will the buyer be held responsible for the debts of the condo ass. for instance? What other financial risks are there for the buyer?

Why would the current owner not wait until credit crunch is over and just pay dues until market is up to the level he bought the condo at?

NPA - I also own a condo in the same complex and am just at a loss at what to do... I am in the same situation as you. Please contact me when you can so at least I can have someone else to talk to about the situation. My email is: bmarshall35@aol.com

Thanks Jane, yes i am an investor, this was my first, and probably last real estate investment. I am not planing to rent the unit out because I dont want to foreclose on someone, that is happening too much. I will get a 1099 most likely as it is not my primary residence.

Well, I would suggest you put it up for sale with a reputable Realtor that has experience in short sales, notify the bank that you are unable to sell it for what you owe and that it is listed as a short sale. An investor will still purchase a "deal" even with bad property management. Your condo may sell for a lot less than you owe, but you will not get a defciency judgement if it is your primary residence. If you live in the condo, President Bush signed into law as of January 1, 2007 that primary residents to not get the 1099 C, only investors get a 1099 C and a judgement. If the bank agrees to a short sale and it sells then you walk away. Yes you lose your investment, but you are not throwing good money after bad and you will not need an attorney as you will NOT have to file bankruptcy. But please, if you have it rented, do not let it go into foreclosure wihtout notifying the tenant. Too many families are being evicted because homeowners are keeping their rent and not paying their mortgage. This is unfair to a tenant that paying and needs a home to live in with their family.

Is your unit rented? If so at least you're not taking money out of your pocket to fund ( or minimizing the cost to fund). If it is not rented get a tenant to help the "bleeding". If the community is livable a tenant won't be concerned with the other issues you stated. Contact the Lee county/Ft Myers section 8 office and post your property. Although your circumstance is different than most it is very similiar in the sense that you have a property that has either devalued or there is little interest from another party to buy and what do you do next. Florida is still an attractive market for buyers for several reason and the market will eventually change but can you wait it out. Good luck!!!

Thanks Bill,

At the last meeting our property management company said they were dropping us due to non-payment, but they did waive the 6 months of back payments. Nice of them, but now we don’t even have a property management company. As far as hiring an outside management company, being that the association owes so much I don’t think anyone would take the job without being paid first (I wouldn’t)
I guess that means we are self managing. The condo board members floated two options.
1. Bankruptcy protection (chapter 13?) for corporations…that may keep the city from shutting off the water.
2. Short sale the entire complex, try to find a buyer to offer a per sq ft bid for all the units and turn it (back) into an apartment complex. Problem is you’d have to get all the banks and owners to agree on that.

There isn’t much of a sense of “community” as most owners are investors like me and are now in defense mode…

Personally, I get it that my credit will be sacrificed if I let this unit go into foreclosure. I could try to pursue a deed in lieu but I don’t think my lender wants to take over this unit any more than I want to keep it. However, if I point out there going to get it regardless and they can save a lot of time and attorney costs perhaps they’d be open. I’ve been told that deficiency judgments haven’t been too prevalent in the foreclosure mess so far but as banks get desperate they may start going after them.

It’s really a shame because those of us who are being responsible and up to date with all the special assessments, dues, etc. are shouldering the burden.

-npa

Npa,

Wow....what a mess! It sounds like you are doing all the right things. Did you specifically ask an attorney what the impact of you "walking away" and letting it go back to the lender would be?

Now is the time for a strong leader to step up and take charge.....solve the insurance issue, then prioritize the other problems. There is a solution short of disaster but time is running out. Has the community considered bringing independent management companies to help problem solve?

Good luck,
The "Eckler Team"
Century 21 Almar and Associates
941-408-5363