Condos Sold Without Owners’ Permission For 1/3 Their Value

Imagine that you've recently purchased a condo for $100,000. The complex where it's located is about 90% rented, and 10% owner-occupied. The complex's owner struggles, and the whole neighborhood goes up for sale in a foreclosure auction. The new owners dissolve the condo association, since they own all of the rentals, or 90% of the homes in the complex. This gives the owners permission to sell the entire complex at once, including what used to be condos. Your proceeds from having your home sold out from under you: $33,000. You still owe the rest of your mortgage, but have nowhere to live. Condo owners in Reading, Pennsylvania experienced this nightmare recently, and there is no legal way out for them.

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