Florida; non-payment of maintenance and utilities

[Glengarry]

I own a condo in Florida where a relative lives rent free. What is my position if I stop paying maintenance and utility bills? Can the property be taken from me to compensate while someone is living in it? Or do I have to declare myself bankrupt?

[Friend In Court]

Originally Posted by Glengarry I own a condo in Florida where a relative lives rent free. What is my position if I stop paying maintenance and utility bills? Can the property be taken from me to compensate while someone is living in it? Or do I have to declare myself bankrupt?

The condo association fees constitute a lien against the property and the association can foreclose on you and own the condo for delinquent fees. Foreclosure proceeds regardless of whether someone is living there or not. Your relatives will get booted out, evicted.

As to the utilities, allowing them to go unpaid and get shut off will also violate condo association rules.

Foreclosure here in Florida is judicial -- proceeds through the courts. Also, if a property sells for less post foreclosure than the mortgage owed, the lender can get a deficiency judgment for the difference. And the lender can collect that deficiency judgment for 20 years against any assets one has.

Condos have been a cheap drug on the market in Florida with sales going at a fraction of their purchase price in the mid 2000's. However, the market is firming up in many cities and sales have picked up. If one is able to rent and hold on to their condo, values are increasing and one may be able to avoid a financial blood bath.

My suggestion is to contact a local realtor and see what the fair market rent would be for your condo. You can also check real estate rental sites for the area. And tell your relatives to pick up the utility bills immediately, pay rent or get out.