Debt, foreclosure and bankruptcy; all terms that are present in the news each day as our economy continues to take a toll on Americans everywhere. No person from any particular walk of life or socio-economic status is immune to its effects, and many people fear their options are running out.
This was exactly the case for one condominium community in South Florida that was facing the threat of foreclosure just one year ago.
Did Bankruptcy Save Them?
A Palm Beach County condominium community was hoping the answer would be “yes”. Facing foreclosure, the community turned to bankruptcy protection for help with their financial problems.
The problems began a few months prior as condo owners became unable to pay monthly condo fees or began defaulting on their mortgage payments. With the bank hesitant to take modify any “underwater” mortgages worth less than what is owed on the property, nearly half of the owners were stuck with their properties and ended up in foreclosure.
To save the community the condo association decided to file for Chapter 11 in efforts to save the properties from foreclosure while reorganizing its debts. As of today, the community is proud to have emerged successfully and with a profit for the first time in several years. Now that the community has absolved its debts and put some money in the bank, they are in works to help community homeowners maintain their properties by reducing condo and maintenance fees and making improvements to the property.