Question: Condominium is converting to apartments. What happens to mortgages and condo fees? Would be property values be affected, if so how.
Answer: Typically, this is referred to as “De-Conversion”. Depending on the state do you live in. This real estate development option was more common in the North East United States about 30 years ago. With the current condition of the Real Estate market, it seems to be making a resurgence amongst the development community. If this is a similar situation, the current condominium board would have previously voted to accept the offer of the purchaser predicated upon all mortgages, liens, and claims being paid in full. Depending upon outstanding mortgage balances, each condominium unit owner normally is due a “buy out” settlement as well. Post De-Conversion, the apartment dweller must pay rent, along with a smaller monthly “maintenance surcharge”. Your best resource for getting your particular questions answered should be either the president of the current condominium association, or a contact within the organization taking control of the complex.