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

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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