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Foreclosures Hit Condominium Associations Especially Hard
Foreclosures Hit Condominium Associations Especially HardBy Bill Walsh
Times-Democrat Staff Writer
Part of the rationale behind the board of supervisors' decision to apply for a $2 million grant to buy foreclosed homes, fix them, if necessary, and sell them, resides in a foreclosed home's ability to wreak havoc on a neighborhood.
The dollar figures vary according to home prices, but the rule of thumb figure often used by real estate professionals is $25,000: Nearby homes lose $25,000 of their value for every foreclosed home in the neighborhood.
When condominium units fall into foreclosure, that financial devastation can be compounded.
Not only do the empty units hurt the overall value of those that remain, but banks generally haven't been paying the condo fees on properties that they have taken over.
In a typical situation, the financially strapped homeowner probably hasn't been paying those fees for a while, either, Julie Emery said. "If you can't pay the bank, what's the point of paying the condo fees?" the Century 21 Realtor wondered.
Three things can happen when fees get the short shrift. None are positive.
See the May 6 Times-Democrat for the complete story.
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