Someone has to pay the bills, and if 27% are delinquent, then the burden's going to fall on you and others who will pay.
Beyond that, if 27% aren't paying their condo fees, that probably means about 27% aren't paying their mortgages, either. Which means the building is going to be full of foreclosures. That'll make financing difficult. That'll make it nearly impossible to sell so long as there are some foreclosures left . . . which might be years.
If you absolutely know you're going to be living there for 5+ years and you can buy for 20% under fair market value (using current comps, including foreclosures), and unless you can afford a 40% increase in your condo fees, then you might consider it, recognizing you're buying into a ton of headaches. Otherwise, look for something else.
Most banks will request a condo questionnaire to determine the status of delinquencies, investor ratio and reserves. If the condo does not meet the requirements of FHA, Fannie and Freddie - financing will NOT be allowed.
No financing? Less possible buyers....lower prices....more trouble.
Serving Maryland, Virgina and the District of Columbia
You had mentioned Madison as exception. Are you talking about 850 N Miami Avenue? If so I am interesting in that building and would like to know more about it. Whatever information you can provide will help in making a decision.
Deliquencies often lead to short sales and foreclosures which in turn lead to increases in condo fees for the ones paying and lower property values. Also, if you are NOT a cash buyer, you may not be able to get financing to buy in a building with such a high deliquency rate as it is seen as a bad and unsafe investment for a lender. I am working with buyers looking for condos and tend to steer clear of newer buidings because of these reasons (there are a few exceptions like the Madison). FHA, conventional all have different requirements and criteria that a building must meet before they will give you a loan to buy there...but I also tell my cash buyers to be wary too, mainly due to likely increases in maintenance that Don mentioned..also, if people do not pay maintenace then they are not going to pay any special assessments that may come up, this can result in assessments and improvemnts to the building not going through or half finished assessments......If a lender isn't going to take the risk, why would you want to??