What does it mean when the Condo Association is in Bankrupcy?

Question

the realtor said the judge had ordered everyone to pay double condo fees, So instead of $381, its $762. My question is, if I'm interested in buying the condo, what's better that they pay the closing cost of around $4-$5K or that he pays the extra of $381 per month for the next year? The realtor also said that management had told him that it would only last another 3 months that they have to pay the extra $381.

Answer 1

Yikes, I would even touch it, the association sounds corrupt. Even if the owner pays it for one year or pays your closing fees, there's no way of knowing if it won't happen again, and then you'll be stuck paying $762 a month on top of your mortgage - which is ridiculous.

Answer 2

Sounds to me like your condo association is either corrupt or terribly mis-managed. Are these new condos or have they been around awhile?

The condo association runs like a business. They usually take care of landscaping, outside maintenance, insurance, etc. If the monthly association fees that the residents pay don't yield enough money to pay for the services the condo association is buying, then they go bankrupt.

I live in a condo and if my condo association went bankrupt, I'd be pissed and demanding some answers as to why they are bankrupt.

Answer 3

It means they owe more for expenses (roof repair , fire alarm replacement , whatever ) than they have in their account . ( same as a personal bankruptcy )
Only another 3 months ? Ya , like I would believe that !
Condo HOAs . . . an item you should check thoroughly Before buying . Check their solvency and I'd avoid anyone in bankruptcy . Who knows what else has Not been done while their account is reading $0 !

Answer 4

Let me get this straight ... Are you considering buying a condo unit whose Homeowners' Association is in bankruptcy?

Run far and run fast, you don't want this kind of drama in your life.