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Introduction
Prior to Florida’s economic downturn, the housing market had been flooded with condominium units for sale from an explosion in the development of condominium complexes throughout the state. Unfortunately the detrimental impact from the current mortgage crisis has left a surplus of these condominiums on the market and has left the Condominium Associations that house these vacant units holding the bill. Aside from unsold units, Florida's condominium and homeowners' associations are facing what experts call a trickle-down disaster from the property crisis; hundreds of condo buildings are facing budget shortfalls as thousands of owners are becoming delinquent on their mortgages and consequently their condominium assessments. The stress of maintaining the aesthetics and functionality of these condominium and homeowner associations is taking its toll on the Association’s officers as well as its homeowners.
Associations in Distress
Within community associations, underfunded reserves have given way to underfunded operating budgets as the economic crisis deepens and community associations are finding layoffs and foreclosures beginning to severely impact their ability to pay for even necessary daily operations as assessment payments dry up. What was once predicted as a future problem has been accelerated to the present by the sudden economic downturn.
Community associations rely on the monthly cash flow from assessments to pay virtually all of their expenses. In most cases, they have no other source of income. When that income is seriously curtailed, the ability of the board of directors to protect and maintain the association is in jeopardy. Borrowing from reserves works for a while, assuming there are reserves in the first place. But that lasts only so long as does the available cash, and then what? Vendors will only tolerate rendering service without payment for so long before they cease operations. Utility companies will only allow an account to remain delinquent for so long before they begin to turn off every day necessities such as electricity and water. Maintaining the overall integrity of the Community has now become a major problem.
Many may think that only those who have defaulted on their mortgages or those who have become delinquent on their assessments and face foreclosure are encumbered by this problem. However, the unit owners who have responsibly made their mortgage and assessment payments on time are also greatly affected. For example, a 100 unit condominium association that has 23 delinquent unit owners is now forced to operate a budget with only 77% funding. The association is forced to special assess its owners and the responsible 77 owners are now covering the missing funds from the 23 owners whom are delinquent.
Foreclosure Solutions to the Rescue!
Foreclosure Solutions was created to provide immediate revenue and direct financial relief to Florida condominium Associations. This new resource will virtually eliminate the burden of Associations aggressively and most times unsuccessfully pursuing delinquent assessments from its unit owners in an attempt to stay solvent. Forclosure Solutions will provide instant capital and liquidity to condo Associations to offset their delinquent assessment balances, and allow the association to maintain a desirable living standard.
Whether your Association has a delinquency balance of $10,000 or $1,000,000 Foreclosure Solutions is at your rescue!
