Tuesday, May 4, 2010

Entire condo complex to walk away from their mortgages

A couple of Viewpoints ago I wrote “Bad news for condos”, touching on (among other things) many condo complexes reaching a tipping point where it will be almost impossible for them to regain their former owner-occupied levels.

Recently economist Mike Shedlock (Mish’s Global Economic Trend Analysis) wrote about a condominium complex in Redmond, WA, which has so many vacancies, causing the HOA to become underfunded, and whose remaining owners are so far upside-down on their mortgages, that they voted at an HOA meeting to consider walking away together – ALL OF THEM!

Unfathomable just a couple of years ago; today it’s hard to blame them…

Your still shaking his head Realtor,

Chris Butterworth