REO Condo Question

[Don Avery]

I am purchasing a condo from Countrywide REO in Florida. We ran into trouble with the HOA. It seems that when a condo goes into foreclosure the banks stop paying the fees. Countrywide has agrees to pay all back fees with this condo. But we just learned the complex has 25% of the units in foreclosure. That means 25% less income. The monthly fee was just increased a little bit. I'm worried about the HOA's ability to collect fees from the bank owners of these foreclosures and what that might mean for the members that are actaully paying their fees. It seems that potentially there could be an HOA meltdown in Florida without some legislative action. Alot of these HOA's were set up right at the end of the boom and EVERYONE paid way too much. In these complexes basically everyone is flipped and many are walking. What happens if the foreclosure rate goes to 50% or 75%? Can an HOA pay their bills on this much less income? Their only recourse is to raise fees or assign an assessment which would cause more to walk. It would seem that the best solution would be to make it easier for he HOA to collect fees for the REO units. Anyone have any insight on this situation that would calm me down? Or should I run away?