This seems to be more reason to stay away from condos!

[Ben S]

Was just reading this article regarding a condo community's HOA dissolving, and the owners - owning roughly 90% of the complex - decides to sell out the community since they cannot afford it. This ends up screwing over the remaining 10% of the condo owners in which they still owe mortgages on, but are squatting in their own homes!

http://consumerist.com/2012/06/condos-sold-without-owners-permission-for-13-their-value.html

Not sure if this is something investors see or have heard before?

[Bill Gulley]

Condo projects have two sides, privately owned living units and common areas not attached to the living unit (exceptions may be halls). The pool, the club house, the boat ramp, the weight room, tennis courts, sidewalks, landscaping and other amenities are owned in common and or retained by the developer/project owner and they can sell that at any time, they can also lose it if the fail to pay liens as required. The individual owner of a living unit then has to assume any issue that puts the common areas at risk. And, in some cases, force the sale of a living unit but the owner is still the seller if the burden of management is too big, that may also lead to a strategic default or a note being called due. So, you condo developer is a partner overall and as in any breakup of a partnership it can have fall out for others. That's why you need due diligence toward the condo HOA....good luck