Condo owners are feeling the heat due to mortgage crunch. A number of them are finding it difficult to pay off their condo fees. The subprime mortgage debacle is casting a bad effect on not just the condo owners but also the real estate as a whole. Foreclosures have started to take over the mortgage users.
Delinquency is too on the rise and people who had brought property for making a quick buck are now renting their condos for less than monthly mortgage in order to take care of the shortage and some are not even willing to pay their condo fees. People had been counting on increased equity and unfortunately that is really not happening.
A number of people had financed their houses with non traditional adjustable rate mortgages but now a number of them are having tough time keeping up the interest rate adjust and therefore the payments are climbing. Refinancing is also not happening since properties have lost value and even in case they sell off their property they still have a lot to pay to their banks. Pity, the debacle took place at a time when first time buyers decided to step in.
Via tdn
