Archive for the 'Mid-Rise/Hi-Rise Condos' Category
Unintended Consequences of Condo Foreclosures
8 Comments Published by April 7th, 2009 in Buyer Advice, Condos/condominiums, Foreclosures, Mid-Rise/Hi-Rise Condos, REOs (Bank-Owned, Foreclosed Properties). by
When you, the buyer, purchase a condo in a multi-unit/hi-rise building, you may not be aware of the unintended consequences that can arise due to your neighbor(s) defaulting on their mortgage(s) and/or condo/association fees.
Depending upon how many homeowners in your condominium building are in default–those of whom have stopped paying their mortgages and association dues–will directly impact the condominiums reserves and the funds necessary to operate and maintain the integrity of the building. As a result, the HOA (Homeowner’s Association) may have to vote to increase the association dues/and or propose a special assessment for each and every homeowner in the building to cover the short fall resulting from your neighbors’ defaulting on their loans and/or dues. This problem can be compounded depending upon how many of the condos in the building are in default. (more…)
