According to an article in today's Ft. Lauderdale Sun-Sentinel, twenty eight of the one hundred sixty eight units are paying their maintenence fees. They owe $90,000 to Deerfield Beach. Fannie Mae is already refusing to write paper on condo sales with a 15% delinquency rate in unit dues. What is going to happen when these buildings are boarded up due to lack of utilities? Safety issues, squatters, blight, slums? That movie Escape From New York comes to mind....I think this is an issue that should be followed closely.
There is potentially huge fallout from this new development: What happens to the people who have been paying their bills and now have to move because they don't have water? Foreclosure. What happens to the cities, who if they DON'T cut the water (and instead eat the losses - or drink as the case may be) Debt, in addition to the drastically curtailed tax revenues, which will be passed on to other homeowners which opens another can of worms. For how many homeowners will this be the last straw that will put them underwater? How much can the cities absorb? Can the Feds bail out individual cities in addition to their yet to be finalized stimulus package? Is this being considered?
Only one thing is certain; there are potentially enormous buying opportunities for the circling vultures. I think we're getting into a weird area here, what do you think?
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