Before you examine it, let me make my point.
Most Condo associations I know are in a healthy financial condition, are well managed and do not experience the kind of problems faced by those mentioned in this article. This story is about specific cases and does not convey the general picture.
However, we must admit that the rate of delinquency in condominium fees payment is at historic highs, as is the rate of mortgage delinquencies and foreclosures.
This is a nationwide problem, and is accentuated in Florida due to overbuilding, real estate speculation, and all what we already know about the present real estate crisis. However, condominiums are here to stay. Their legal structure and management rules are being improved by new laws and regulations. Legislature has recently rewritten them to address many issues. Abusive condo boards can still be a problem in many cases, as well as issues in condominium management. However, they are the exception.
This is the text of the article:
One tactic attorneys say won't help most cash strapped associations is Chapter 11 bankruptcy, which is intended to keep creditors at bay until a company restructures its finances." If it's an income problem, not an expense problem, then Chapter 11 won't work," said bankruptcy lawyer Arthur Rice, with Rice Pugatch Robinson & Schiller in Fort Lauderdale.Bankruptcy works for associations that were victim of a onetime event,and need to restructure their debt as they recover financially.
Henry B. Nathan is a Florida Realtor at United Realty Group Inc.
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