When you purchase a condo, you are also purchasing the condo association that goes along with it. One thing to make sure is that the condo you buy, DOES NOT have an association that is going bankrupt.
In the past month I have worked with several buyers looking to buy a cheap condo foreclosure. What we found out is that half of the condo complexes we looked in had associations that were underfunded or bankrupt. How does that affect a buyer?
Getting a Loan - Most lenders will not loan money on a condo that has an association that is under financed.
Liabilities - If the association doesn't have enough money to pay the lawn service or the snow removal, guess who does these chores? You will still be required to pay the monthly association fee even if they can't collect enough to pay the vendors.
Repairs - Again, if too many condo owners are behind in their association fees or have been foreclosed on, who is going to pay for the repairs on the common areas like roads, roofs, broken windows, etc. You may be faced with increasing association fees and assessments. Who is going to pay the building liability insurance in case the complex gets sued for an injury on common grounds? You don't want to find out you are not protected.
Resale - One of my buyers said, "This is such a great deal on this foreclosed condo, I'll just pay cash if my lender won't give me a loan." What is wrong with this thinking is all of the above AND who are you going to sell your condo to if future buyers can't get loans.
So, I'm not telling you that you shouldn't buy a condo - there are some great deals out there right now, BUT make sure that the complex is not experiencing a top-heavy number of foreclosures that would affect the value of your property. Your Realtor is invaluable in helping you.