Condo Association Management Blog

To find out if the HOA is really in bankruptcy you can ask your board. They would know and they must disclose. 
 
It's fairly rare that an HOA would declare a bankruptcy because they don't have assets that they need to protect and they don't have creditors that they need to shield themselves from. 
 
What is more likely is that your association has a very high delinquency rate and doesn't do much to collect. If that's the case many banks will not loan money under these conditions. 
 
Your only option might be to find a cash buyer. 
 
Another option you have is to review your governing docs, specifically policies associated with collection. If your board doesn't follow them you may have a case to push against the HOA for not doing their job in enforcing governing documents, which in result caused your financial loss. 

You may want to contact the governing agency in Florida, DBPR is available on line and by phone to respond to your issues regarding your next steps. They may have already set up a settlement plan via the community attorney. Ask the board and management lots of questions.  
 
PS 
 
You must disclose the community financial situarion to any potential purchaser.

Thank you very much for your prompt and straight forward answers. I will take action since I have a cash buyer. Again, I am grateful for your guidance. Martha

Examples of letter to newpaper editors about lack of HOA Laws. 
 
Examples of letters to legislatiors to update HOA Laws