to follow up on his answer, (which is pretty much correct) ...
the non-payment by foreclosure property owners has left the remaining paying property owners to pick up the check or fear that amenities will go un-maintained or abandoned.
The electricity, insurance, pool care, lawn maintenance etc must still be paid for, and if 20% of the property owners fail to pay their condo fees, then the remaining 80% must pick up the tab, which forces the condo fees up, eating away at the equity in the property.
If your condo fees increase, your property value goes down, due to the buying power of the combined cost of the unit + condo fees in correlation to the market value and market conditions.
I hope that made sense, if not, I welcome the call to explain it further.
Its one thing to not be able to pay a mortgage payment every month, but its another to fail to pay your association or condo fees. Yes, its bad to have to come down to that decision, and I understand circumstances occur.. As a short sale negotiatior, I see & hear it everyday and there are some VERY JUSTIFIED short sales that are occurring, but the short sale really only satisfies the lender. Many times the association or condo community is left to only raise the fees to cover the losses.
Brady Pevehouse, an agent of Perrone Realty specializing in Avalon Park Real Estate and homes for sale and Avalon Park Foreclosures. http://www.AvalonPark.SellitinCentralFlorida.com
no security,if there here they suck.the gym and pools always close .they let trash move in there rentals .
gates always open or broken.drug dealers run this place ,you make a complaint they brush it under the carpet they dont give a dam ,people bring there motorcycle in there units,police only answer calls when they here a gun is involved.ya believe me a civil law case coming up i will get some money back.
the gym out of 4 years living here i think 6 months it was open.pools open 1 month out of 8.they say this place has a camera system there full of crap thats what i do for a living and i know if there is or not i scanned the hole property for camera . there fukin crooks and liers be aware ps if i could move i would cant afford to im stuck here. in this housing project /condo
Another couple things to add:
It may not mean that the pleace is run down and "ghetto" as posted by another member if the prices are LISTED at 20k. Many times, with regards to short sales, they are listed at a lower price than what they will realistically sell for or what the bank will actually approve a sale for. Many of the prices in listings are lower than they should be and have not yet been approved by the bank as a price they would agree to sell for.
Another problem with some of these condos (this was covered below), is the high HOA dues. It's matter of doing some homework or working with a diligent agent that can give you some good facts and knowing what your goals are with your property search. Whether it is to live in as your primary home, secondary home, to buy and resell or to rent out, I think these different situations could change your pro's and con's to buying a condo in this price range.
From my experience, many of the units actually and realitically priced in the 20's need a considerable amount of work.
Best of Luck
Nothing really wrong except you can't get an FHA loan cutting out First Time Buyers with 3.5% down due to Condo Doc wording, number of investor owned and until just recent vacancy rates (non payment of HOA dues leaving property in distress).
Because of this it's a cash only buy as I don't think you will find a conventional loan under 100,000, banks feel it's too easy to walk away.
If you are selling and buying and currently not using a Realtor check my website to see how we help you save with full service.
Take time to explore my profile located here on Trulia: http://www.trulia.com/voices/profile/Real_Estate_Pro-Orlando
Dave Lowe, Broker Two4One of Orlando
GRI â€“ ePRO â€“ GREEN (Designations)