Bills are piling up in condo associations as many units are in foreclosure and/or unit owners become delinquent in their payments.

Basic association needs such as paying utilities, up-keep of common areas, cable tv services and more are being cut in order to make the dollars collected stretch out.

When units are foreclosed on, my lenders do not pay their fees until the unit is re-sold. In addition, as existing unit owners have their own financial troubles many are pressed to make their payments. If each unit does not pay their fare share, the remaining units owner have to either pick up the slack through special assessments, see services cut or a combination of both.

Some condo associations in Miami have already had their water turned off, others have had cable service cut off, some elevators and hallways have limited a/c service as well. 

Bankruptcy is an option some association have turned to since utilities cannot cut off power or turn off the water.

It can be costly for an association to file bankruptcy and finding a solution can be very challenging. Filing allows associations to renegotiate leases and contracts with vendors.