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MORE FORECLOSURES ON THE HORIZON?
By
Jan Bergemann
Published November 29, 2024
We saw a
huge wave of foreclosures rolling over Florida’s condominium
communities in 2007/2008, caused by a horrible economy and by
special assessments necessary to pay for hurricane damage
repairs and high insurance deductibles. It was a big warning
shot – pointing directly to the lack of reserve funds in these
associations. But nobody listened! Many owners of associations
– especially older hi-rise buildings – voted down fully funded
reserves. And from inspection reports we are seeing now that
these same associations failed to maintain their buildings
because the owners were trying to keep the maintenance fees down
as much as possible.
But after
the collapse of the Champlain Towers South in Surfside that cost
the lives of 98 people, these condo owners are now presented
with a huge bill, making them finally pay for years of great
living at artificially low cost.
The
Condo Safety Bill (HB
1021) finally made condo owners aware what the real
cost of living in these condos really is: It’s much higher
than many of them can afford!
And if
these condo owners are not willing to face the facts and realize
that their budget is unable to pay for the real cost of living
in these high-priced condominiums we will see another huge wave
of foreclosures rolling over Florida’s condos.
Latest
next year, when these owners will face the amount of special
assessments for necessary structural repairs and the budgets for
2026 – with fully funded reserves – they have to realize that
the necessary payments will be much higher than their income.
That
leaves them with only two options: Sell – or being foreclosed
on. I know it’s not an easy decision to sell your home, but when
selling your home you may still end up with some money in your
pocket. But once the association starts foreclosure proceedings
you end up with nothing but an eviction notice.
TAKE YOUR PICK!
We
already hear people demanding help from elected officials:
Low-interest loans to pay the looming special assessments! Some
counties already hand out loans – no-interest or low-interest –
but in my opinion this is very short-sighted. Just handing out
loans to pay for the special assessment is not really helping
these owners. In the end they will default on the much increased
monthly maintenance fees and/or the payments for the loans.
And that
means that all other taxpayers will pick up the cost of living
for all the folks who lived a happy life – until 2025 – in these
condos and refused to put money into a “RAINY DAY”
fund.
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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 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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