Quote:
Originally Posted by ranchlandsselling
I looked into the lending of monies to a condo corp. Rates were terrible and it basically sank the condo's finances for years and years going out, not to mention the hit on resale value would likely be similar as just foreclosing on units. In the long run I think it's better to borrow as individuals or walk/foreclose. Owning in a complex with debt would be equally as bad as just walking or taking the hit and moving on. Except with the debt you're not moving on . . .
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however, there is substantial negative effect on property values when several (or more) of the units are sitting empty and waiting for the forclosure sales to go through. The banks will not want to flood the market for that building with "as is" sales, as it affects their values as well.
Every condo is different. There are times where compelling an individual to arrange their own financing is the right decision, and there are times where the corporation borrowing is the right decision.