“They have mortgages on propertues based on the old valuations and they cannot sell at a low prices as they do not have enough money to discharge the existing mortgages”
ARE YOU SAYING THAT EACH & EVERY APARTMENT HAS GOT MORTGAGE OUTSTANDING TO THE FULL VALUE OF THE APRTMENT AT THE HEIGHT OF THE MARKET ? wHAT ABOUT THE THE DEVELOPERS CAPITAL ???
From the assett perspective the properties are still on their books at the old proces making the company look financially healthy
THE ASSETT VALUE SHOWN ON THE BOOKS OF THE COMPANY SHOULD BE AT COST OR NET REALIASBLE VALUE. NOBODY LOOKING AT THE ACCOUNTS WILL GIVE THE WINDOW DRESSED POSITION ANY STANDING.
and the mortgage payments are reducing.
THE DEVELOPER NEEDS CASH FLOW TO REDUCE THE BALANCE. IF HE IS NOT SELLING, WHERE IS THE CASH BEING GENERATED FROM ??
Often they simply don´t bother to pay the community fees.
THE ADMINISTRATORS DONT CHASE THEM AS THEY WANT MORE BUSINESS FROM THE DEVELOPER FOR THE FUTURE, ITS YOU SCRATCH MY BACK.
anyway so it can be better to laeve the properties empty and unsold