U.S. condominium lenders, developers, and associations are turning to unconventional strategies to avert financial distress as the foreclosure epidemic continues.
For example, Jim Chew of Columbus, Ohio-based Condo Management reports that some developers have resorted to doing condo financing internally.
Lenders in Florida, meanwhile, are leasing foreclosed condos -- although they soon could be subjected to new escrow requirements to ensure that associations are paid assessments in a timely fashion.
Condo auctions, offering discount prices, are another way that businesses are hoping to steer clear of financial ruin.
Source: USA Today, Judy Keen (09/14/09)