September 14, 2009

Condo associations adapt to troubled times

U.S. condo associations are learning to adapt to an economic landscape pockmarked with foreclosures, a survey of various associations indicates.

If a condominium in an association goes into foreclosure, various communal expenses, like insurance and maintenance can take a hit. At Chicago's Shoreline Towers -- with 378 individual condominiums -- there could be five to 10 condos in foreclosure at any given time, vice president of the condo association board Chris Sempler said.

To adapt to the economic environment, the association is renting condos which will be sold when the market improves, USA Today reported Monday.

In Florida, Circuit Court Judge Alan Dickey wrote, extraordinary times call for extraordinary measures, as he appointed a receiver to collect rent for a condo association with more than $700,000 in unpaid association fees due to the high rate of delinquent condo owners.

Accelerated Marketing Partners, based in Boston and Danville, Calif., has begun auctioning condos.

The worst alternative is for the bank to foreclose and take the property back and wipe everybody out, co-founder Ken Stevens said.