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FORECLOSURES IN HI-RISE CONDOS?
By
Jan Bergemann
Published August 11, 2023
I guess we all know in the meanwhile
that
SB 154 is a financial disaster for many families living
in Florida’s hi-rise condos. As much as a Condo Safety Bill was
needed, the financial impact on many condo owners is disastrous.
Media reports already have shown that these “safety measures”
enacted by the Florida Legislature will force many families out
of their homes. Hopefully many of these families will see the
writing on the wall before they are falling behind in paying
their monthly maintenance fees and/or special assessments.
The Florida condo market is already
reacting to this trend – and sales prices are going down.
Not only are developers who were eager
to buy whole buildings are reneging on their purchase offers,
realizing that the market is on a downward spiral, but potential
buyers of single units are being careful to make offers for the
requested sales-price.
The Federal Housing Administration (FHA)
already reacted to the consequences of
SB 154 and put quite a few hi-rise condos in South
Florida on their “black-list” – meaning the buyer will not be
able to get an FHA backed loan, an important factor on the
resale value of these units.
Realtors are already warning potential
buyers to watch the financial “Red Flags” when looking to buy a
condo unit (see article “Financial
Red Flags for Clients Buying a Condo”).
The big question: How will Florida’s condo market develop? Are
there many “FORECOSURES” on the horizon? Will we be
seeing as many foreclosures as we saw in 2007/2008?
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Jan Bergemann is president of Cyber Citizens For Justice,
Florida
's largest state-wide property owners' advocacy group.
CCFJ works on legislation to help owners living in
community
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associations. He moved to
Florida
in 1995 - hoping to retire. He moved into a HOA, where the
developer cheated the homeowners and used the association dues
for his own purposes. End of retirement!
CCFJ was born in the year 2000, when some owners met in
Tallahassee
- finding out that power is only in numbers. Bergemann was a
member of Governor Jeb Bush's HOA Task force in 2003/2004.
The organization has two websites to inform interested
Florida
homeowners and condo owners:
News Website: http://www.ccfj.net/.
Educational Website: http://www.ccfjfoundation.net/.
We think that only owners can really represent owners, since all
service providers surely have a different interest! We are
trying to create owner-friendly laws, but the best laws are
useless without enforcement. And enforcement is totally lacking
in
Florida
!
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