Haven’t you ever wondered what’s the deal with that condo community that used to be so nice but now it’s looking a bit run down, you know the one where half the community has a new roof and the other half doesn’t? This is yet another side effect of the foreclosure crisis facing America today. Condo associations, mostly newer ones, are facing serious financial crunches as more and more homeowners default on their payments and foreclose.
Many of the newer associations often don’t have enough reserves built up yet to cover the everyday expenses that are required to maintain the upkeep of the property. It makes sense, if nobody pays than there isn’t going to be enough money coming into the association. What happens when the community needs a new roof? New elevators? New paint? These things are required to be maintained by the Condo and Homeowners associations but lately there hasn’t been enough in the budget to cover it. Many associations are finding there reserve accounts tapped out.
Many homeowners in gated communities have been living with gates that don’t work and are always broken. They pay their monthly dues to have these amenities yet they can’t enjoy the benefits of them if they never work. One gated community in Winter Garden has a gate that is almost always broken. It sits open on a daily basis and anyone can just drive in and out of the community. The homeowners still have to pay their regular dues yet the association is unable to come up with the money to have the problem fixed due to their limited budget.
Until the inventory starts to clear out and more and more bank owned homes are purchased, this will be a common issue. Things like broken hot tubs, gates, old roofs and ugly entrances in need of some TLC will continue to remain in the equation. It’s a good idea to investigate the stability and financial condition of the Condo or Homeowners association of the community you are thinking of purchasing in. You don’t want to get stuck paying for someone else’s mistakes.