Posted by NJDave on February 10, 2000 at 18:02:26:
During my tenure with GECap, we had occassion to hold scores of foreclosed mortgages on condo complexes in northern New Jersey. The trouble we had with selling these units (even at substantial discount) was the issue of condominium &/or association fees. The Condo Associations were usually bankrupt, and unable to meet expenses including routine maintenance. Forget about emergency repairs… The mortgagors who actually were paying on their loans had to shoulder the burden of EXTRA association fees from those who were not paying them.
If you were to purchase a block of mortgages/units, make sure that the Condo Association is sound, properly run, and their books in order. Demand a very comprehensive property inspection to protect against ‘unanticipated’ expenditures.
If you proceed with the purchase, you may want to place your own ‘eyes and ears’ on their board, to keep you abreast of the goings on…