Despite the recent influx of slowly improving sales figures for property like Miami Beach condos, many have predicted an imminent wave of foreclosures that will mar whatever progress has been made. Nearly six months into 2010 however, this wave hasn’t quite hit just yet, could it be that condo fees of all things are keeping things from getting worse?
Generally speaking, owners who are unable to make mortgage payments aren’t paying their condo fees either, and this goes for any market besides Miami Beach condos. Because of this, lenders are often saddled with the task of taking care of those fees when they take ownership of a unit that’s about to go into foreclosure. The thing is, many of them are trying to escape having to pay these fees and in order to do that, all they need to do is hold out until a buyer shows up who is willing to pay these outstanding fees. The length of time can be quite considerable.
With banks already doing what they can to prevent their glut of Miami Beach condos foreclosure inventory from getting worse, there is a strong possibility that condo fees may be preventing things from being worse. However foreclosures can only be delayed for so long, is the “dam” about to burst?