Do you even begin to grasp the problem Florida law is causing Condo owners? We can all sympathize with the plight of the unemployed. But, the situation is different in a condo. You’re forcing more people into foreclosure because they can’t afford the added cost of carrying the burden of the foreclosed units.

Unlike others who buy a condo and all outstanding debts have to be paid, Florida law allows the bank to pay 1% of the original mortgage or six months maintenance whichever is less. Since it takes forever to foreclose, this virtually always means the 1%. But, what is the incentive for the banks to conclude the foreclosure. If they take over, they have to pay maintenance and maintain the property like anyone else. So, the longer they don’t take over the less they pay because of the 1% rule. With many units upside down, the banks will have trouble recovering the mortgage money. The rest of us have to pick up the burden. So now we have to carry the banks’ problem. Nobody is worrying about maintaining the units, so the association has to step in and do that too. Two units we are foreclosing on were abandoned.  The banks haven’t even started foreclosure.

An abandoned unit has to go through the same procedure as one that isn’t. What for? Two units here took off, handed the keys to a neighbor and went west to disappear. Why do we have to go through a year or two to get possession so we can sell or rent it to someone who pays the maintenance relieving some of the burden on the others? It was abandoned! We’re even paying the electric to run the air conditioner to avoid mold. In occupied units we can’t even turn off the TV cable. If we want to leave it on because they’re still in residence, that should be voluntary not mandatory.

These aren’t private houses where the problem is strictly between the owner and the bank. Associations for homes probably have similar problems to us. A bank and realtor told me that there are condos with upwards of 35% of the units currently in foreclosure. How does any condo bear that burden? If it keeps up, those places will probably collapse into bankruptcy.

We are an adult community and fortunately have had few foreclosures. Most of our people are not subject to the flow of the job market like the non-adult communities. Our problems are small compared to what we hear about in the condo associations near us. But it doesn’t change the fact that we have a couple of abandoned units that we should have been able to take possession of after the public notification drew no response. Even a court clerk could finish the foreclosure on one of these.

How about the genius that decided some of these new casualty insurance companies have to shed some accounts. So the account goes right back to Citizens at nearly twice the price and less coverage. How’s that for helping the condos. We’re aware they’re not well funded. But, with the deductible percent we probably will never collect anyway. In the past six years my condo hasn’t collected anything including the year the hurricane went right over us. At least we aren’t getting gouged for insurance that we never collect on and are required to carry. Why hasn’t the state done anything about FEMA ratings that forces areas that have never had a flood or even close, into flood insurance?

Congratulations to the news media I’m copying. I don’t see anything about this issue. There must be some spot in the middle of the homes for sale you could print something about this. Nobody is reading that section anyway. In case you don’t remember, this is South Florida. There are probably more people living in condos and homeowners associations than anywhere else. So why put anything on the front page that is important to so many? Why condemn politicians who aren’t doing anything to help?

Governor, why aren’t you doing something? Does everything have to be a disaster before anybody acts? Well surprise, its here. The legislature sits up there worrying about repealing a minor insurance law instead of something important like protecting the remaining owners from the condo collapsing and taking their savings with it. You are allowing condos to be forced back into Citizens to get more revenue from condos less likely to suffer losses to support the others. You have done nothing to stop banks from forcing $300 plus flood policies on units designated flood plain by FEMA. Even the second story and above are required to have it. There’s never been a flood, but Florida must protect the banks not the citizens. Some day when the polar cap melts it may flood. I wonder how many people realize that almost all flood policies come from the same company. That must be really profitable. If Citizens needs money, why not do flood insurance in the areas that haven’t had a flood?

Somebody do something. To all the condo owners and condo associations that we will try to circulate this too, particularly those that are having severe problems, give Gov. Crist and your representatives their just reward come election time if they continue to do nothing. They only respond to losing their job and any higher aspirations they might have. It’s time being personable isn’t the only requirement. It’s time performance comes first.

William Zolchonock
President, Woodhaven Condo Association