Condo litigation wave coming? (real estate, condominiums, lenders)

[ace587]

What do u guys think?

Is Condo Litigation Wave Looming? - Daily News Article - GlobeSt.com

"The sheer amount of condominium construction, coupled with reports of a shortage of skilled workers working on those condominiums, suggests another boom in condominium defects litigation. There has also been speculation of a growing condo bubble.

If that bubble bursts, then we will see another round of the attendant litigation: buyers trying to get out of their contracts, lenders foreclosing on developers, and developers seeking bankruptcy protection. Everything would look pretty similar to what happened last time. Hopefully, however, the lenders have engaged in better underwriting this time around, and the condo bubble is a fear that never materializes. "

[tankhead]

Let's see. Let's try to mathematize this:

A surplus of lawyers + a abundance of condos = a sharp increase in condo litigation, if & only if the bubble bursts.

However, considering how many of these real estate deals have been cash deals especially with condos, I don't anticipate a repeat of the same. Rather, I think a slowdown in price increases instead of sharp price drops is more likely in this scenario.