Not a good idea.

I would say no. Unless you plan to buy the unit that is in distress. The other owner most likely will not pay their share of maintaining the property. The burden will be on you to keep everything in order. What happens when they do not pay their share of the water bill or insurance?

When you buy a condo you buy the other unit owners too. I am sure their are good reasons to consider still buying the condo. But, if you are asking yourself the question and are nervous go with the gut and walk away. There are many other places to consider.

My immediate gut reaction would be no unless you may also be in a position to purchase the other side as well should it come up for sale. There are so many unknowns with this situation. If they do not have the money for the mortgage, I would wonder how long this situation has persisted because you have to wonder about the upkeep of the home both inside and out. If it is foreclosed on and then sold for less than what you buy yours for, it puts you in a precarious position if you are taking out a mortgage - especially if the bank takes ownership prior to your closing. My office has experienced sales falling apart literally the day before a closing because the bank does another appraisal that week and comes back with a lower value than the initial appraisal had.

I think it comes down to what are you paying for it (is it a smoking deal?) and are you paying cash? If the answer to either of these is "no" - I would be very hesitant. Many banks right now are not even lending on these units - otherwise known as a condex- so you want to be sure that when it comes time to sell, your potential buyer will be able to get a mortgage or you will have to sell it "cheap" in order to attract a cash buyer.

Good Luck!
Lisa Newman

Hi Trudy- Are you buying with cash? If not, I know the lender would take some of that into consideration. In any event, even if you needed a mortgage, you'd need 20% as a down payment- minimum.
Are there are condo fees? Is there an official association, or a 3rd party property manager? All those things are important for a bank to consider financing you on a condo.
Aside from all that, yes it would come into my decision making. What if the bank takes it and boards that half up and it sits for 9 months? Or longer? Are you ready to do all the snowplowing, all the lawnmowing, ,etc, etc? I assume all the utlities are separate.
Unless its a GREAT deal, I would probably stay clear. If you want any other help, please let me know. Thanks and good luck,

Ken L.