A Foreclosure By Any Other Name Smells Like Defeat

The New York City real estate market may be avoiding foreclosures, but it likely leads the country in “maintenance fee defaults”:

Skyrocketing common charges are the last straw for condo and co-op owners barely staying afloat in a volatile housing market, with mortgage rates hitting the roof.

In two Trump buildings alone, seven people were slapped with liens last month for not paying a total of $50,000 in fees.

One Trump condo owner owes more than $19,000 in unpaid maintenance fees, after falling five months behind on common charges.

While some owners struggle because of job losses or skyrocketing flexible-mortgage rates, the surging building fees are not helping matters.

The fees are increasing, management companies say, because it is costing more for water, fuel, utilities and insurance.

“Unquestionably, there have been increased defaults in payment of maintenance charges and common charges. I’ve noticed it since the summer,” said Herbert Cohen, a partner in Stieffel & Cohen in Manhattan, who represents 60 different cooperatives and condominiums.

This month alone, his firm filed nine liens against owners of the condos at 20 West St. in lower Manhattan.

Those outstanding charges range from $1,433 to $9,241.

Though not all missed payments are due to the current economic climate, industry experts say that maintenance-fee delinquency is on the rise as charges continue to climb — which could be a foreboding indicator for an unhealthy housing market.