Buying real estate at foreclosure sales is one of the smartest ways to get properties way under market value. However, in Florida and other states, buying condominiums, properties governed by Homeowners Associations (HOA’s) or Property Owners Associations (POA’s) can be very risky. Under Florida Law, a non-bank- third party purchaser, takes the property subject to all outstanding liens and assessments. This could be an insignificant sum of money or it could be quite substantial. Some condominiums have high common charges, over $1000 per month ahd there could be substantial capital assessments for roof and elevator replacements. You need to do additional research by contacting the condo association’s attorney to determine the exact amount owed. Otherwise, what seems like a major bargain could turn out to be a substantial liability. Banks of course play by a different set of rules. When they foreclose on a condo or HOA/POA unit, they are only responsible for one year’s fees or one percent of the mortgage, whichever is less. For More Info Go To TeachMeMike.com
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