So you bought a condominium unit  in Florida, now what? For foreign investors, there are certain regulations that need to be met once you add Florida real estate condos to the list of assets you currently own.  The state of Florida is one of the most popular US states for snowbirds that want to bask in the great weather and beautiful beaches. It is also the prime US state for many retiring baby boomers as there is a healthy and active senior citizen community in the region.

Owner Obligations

As a condominium unit owner, one of your obligations is to pay all of the necessary fees and assessments as stipulated by your Florida homeowner’s association.  You must keep in mind that Florida real estate condos are within statute 718 of the state law. The most essential aspects are the powers and responsibilities given to the association and your responsibility as a condo owner to adhere to the guidelines.

Your rights

Whether it is Fort Lauderdale real estate condos or South Beach, the condominium unit association should be incorporated as a non-profit or for profit organization. One of your rights is to become a shareholder of the said association as you have evident property ownership.  Likewise, the board and its directors also have a financial accountability to all of the unit owners. The condo unit association also must come up with a proposed budget annually. The items that need to be included in the budget should be the operational funds as well as expenses along with cash reserves.  Along with this, the condo association needs to provide you with financial statements at the end of the year or within 90 days upon request

Association Authority

In Florida real estate, condo unit associations have inherent powers that they exercise in order to manage and maintain the upkeep of the entire building. They can enter into contracts on behalf of the condo unit owners or file lawsuits. One example is that if a plumbing company hired by the association to do repair work for the building does not fulfill its obligations, they can sue them in court for damages on behalf of the entire condo unit owners.

For Canadians buying US real estate, it is important to note that association members have the right to come in any unit only to do repair work or prevent further damage that can happen to common areas such as roofs, passageways and outer walls.  They also can lease or purchase units in the property.

It is important to know the rules and regulations of your condo unit homeowner’s association so as not to get into some trouble with them.  Issues that may arise are remodeling the unit that has components not allowed by the association.  There are horror stories of unit owners losing their property after a legal battle with a condo unit association that did not bid well on their side.

Beware of some condo unit associations that may charge you with additional condo unit fees for using the available amenities.  It is wise to get legal counsel first before avoiding  payment if you feel that the association is imposing too high a cost.

For more information on Florida real estate condos visit the link below.

When the US housing Market crashed in 2007, record numbers of US real estate properties defaulted on their mortgage payments resulting in the initiation of US foreclosures. This left millions of Americans without homes as banks struggled to get liquidity back and the US government stepping in to prevent a catastrophic collapse of the US financial system.

Foreclosure Statistics

Based on available data, there were almost three million properties that received foreclosure notices in 2010 alone.  These numbers represent a two percent increase from the previous year and would have been much higher if the lending institutions did not receive enough public outcry due to questionable real estate foreclosure practices such as the robosigning scandal that brought about more government oversight on how these proceedings are dealt with.

The Process of Foreclosure

When a homeowner is unable to pay monthly mortgage obligations to the bank, they receive a notice of default.  Every US state has their own regulations about how long they have to pay before the bank seizes the property, but it is usually up to ninety days.  If the property owner still cannot make their payment, a Notice of Trustee sale is then sent where a court date is docketed for public bidding of the foreclosed property.

Effect on Home Values

The housing market crash brought about a significant decline on home values everywhere from Las Vegas real estate all the way to Fort Lauderdale real estate.  Many people saw their long-term investment properties fail.  Bloomberg reported a decline of about 33% in home prices from the peak of the market in 2006.

Foreclosure Forecas

Based on analysis done by Bloomberg, it is expected that six million US real estate properties would face foreclosure proceedings by 2013.  The reason for this is that they are anticipating about five million bad loans that have yet to enter the foreclosure phase.  The only way to stop this catastrophe is for property owners to find some avenue to restructure their mortgage and produce timely payments, or sell them to potential investors but at a fraction of their value.

Areas Hardest Hit

Based on available data collected from 2006 to 2010, the state of Nevada had the highest number of homeowners that have succumbed to foreclosure proceedings.  The statistics are pretty grim with one in every eleven filing as of 2010.  Nevada is followed by the states of Arizona, Florida, and California.

What This Means for Canadians Buying US Real Estate

For Canadians buying US real estate, the present economic mood in the country is providing lucrative opportunities for investment. The weak dollar combined with a strong Canadian currency along with fire sale prices in many prime US states, means many Canadians can flock south of the border to easily snap up properties that were worth millions of dollars a few years ago but are now at a more competitive price range.  
For Canadians looking to take advantage of this unique opportunity in the US, it is recommended that they work closely with an experienced real estate agent in the area they are interested in. It is worthy to note that Canadians looking for US financing could be in for a difficult time because of regulations.  It may be easier to get financing in Canada instead.

To know more about US Foreclosures and how you can invest in these properties click on the link below.