When it comes to Fort Lauderdale property types, the Lauderdale condo market has suffered the most.  A tremendous number of investors speculated during the housing boom that purchasing a Lauderdale condo would reap them huge profits.  Well, we all know how that turned out.  Not very well for investors and even worse for owners that bought to live there.

The fallout of the Lauderdale condo crisis has left many Condo Associations in a very tight financial bind with the burden falling on the remaining unit owners.  Many a Lauderdale Condo has turned into a Lauderdale foreclosure, as unit owners struggle with increased HOA fees and Special Assessments.

The good news for Lauderdale condo buyers is prices have taken a drastic drop and have again returned to very affordable levels.  Fort Lauderdale Realtors have seen a recent uptick in Lauderdale condo sales, as savvy Ft Lauderdale Fl real estate buyers are once again recognizing the current bargain prices of a condo in Lauderdale.

Those buyers purchasing a condo in Lauderdale, whether you’re a cash buyer or planning on getting a Fort Lauderdale mortgage need to look carefully at the health of the Lauderdale condo association you are considering buying into.  When considering a Fort Lauderdale mortgage to purchase your condo in Lauderdale, there are seven key questions you need to know before you and your Fort Lauderdale Realtors decide to purchase.  The answers to these questions may be the top seven “deal killers” for a Fort Lauderdale mortgage.

1. What percentage of units are owner-occupied or second homes vs. rental?  (Rentals should be less than 50% to have a chance to be financed).
2. Does any one person or entity own more than one unit?  (No person or entity can own more than 10% of units).
3. How many units are currently inforeclosure?  (Number of units should be under 10%).
4. How many unit owners are 30 or more days delinquent on their HOA fees?  (Must be under 15% of unit owners).
5. Is there any pending litigation against the HOA?  (If so, may be problem if HOA has any pending liability).
6. Does the HOA have a Reserve Fund?  (HOA must have separate Reserve Fund from the operating account and it must represent at least 10% of the annual budget).
7. Are there any pending special assessments?  (If there are pending assessments, lender will evaluate to determine if any additional financial risk to the HOA exists as a result).

When purchasing your Lauderdale condo with or without a Fort Lauderdale mortgage, it makes sense to have your Fort Lauderdale Realtors do the homework upfront to determine the financial health of the HOA and your investment.  Ft Lauderdale FL real estate can be a tricky purchase these days, especially a Lauderdale foreclosure or short-sale.   Checking out the answers to these seven questions will save you time, money and disappointment. 

Contact me today to assist you with all your Lauderdale condo questions that relate to a Fort Lauderdale mortgage.