Condo Mediators See Walkouts in 2009

Why Pie-Slicing Is Forcing Many To Simply Walk Away

I remember a simpler time when Home & Garden sections of the Miami Herald were reserved for full-color spreads of mansions in Gables Estates and Star Island where doting couples would smile and welcome us cattle into their pool cabanas and gift-wrap rooms. Apparently those days are over. Today, Bill & Susan Raphan welcome us into their living room and shower us with stacks of condo documents and pending litigation. The Raphans have the unenviable task of working for the state's Office of the Florida Condo Ombudsman here in South Florida where-not surprisingly-90% of the annual 16,000 complaint calls originate. Bill Raphan says the biggest problems right now are, "The condominium market, the problems in foreclosures, obviously, liens and delinquencies," and he sees the cumulative effect of all three leading to the biggest problem in 2009: "I know of several condos that are on the brink of people just walking out. They can't afford to maintain their units anymore. Their slice of the pie has become so big that they can't afford it. They are just packing up and leaving their largest investment because it doesn't pay for them to stay. You are going to be hearing about this very soon. This is going to be a real problem."