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Hi Folks,
Need any feedback you can provide on the following situation.
Background about my co-op: Co-op 30 years, the sponsor still owns 51% and is also the managing agent. I bought in years ago and was able to obtain financing through the big banks.
My job is being transferred out of the tri-state area. So we listed our co-op. Turns out we got a buyer at a decent price willing to put down 20%, with good credit. The issue we found out today is that none of the big banks will extend financing because owner occupancy is too low. The mortgage broker they are working with says Chase, Wells Fargo, HSBC, Citi and Bank of America have all declined specifically sighting co-op issues around owner occupancy.
The board says nothing they can do, the managing agent won’t comment.
What options do I have? While it may damage my credit, is allowing the apartment to go into a legal proceeding with the co-op the right way to go? (im up to date with the co-op and my mortgage)
But my job will be gone by end of April and time is not on my side.
It was a real blow today to hear a good offer going down the tubes.
Any ideas?
There are lots of other banks, but I don't have any personal knowledge of their financing of coop mortgages. Valley National, Sandander, Capital One, QuickenLoans,many more local banks. Also private mortgage brokers. I guess you're not in a position to provide the mortgage yourself. Have there been any sales at all in the last few years? If so, see if you can identify the mortgage holder. Is your mortgage paid off? If not, will your bank allow assignment of the mortgage to the buyer and offer additional $$? Has the buyer spoken to a mortgage broker? I hope one of these ideas will pan out for you.
My building has same issue, last four sales have been cash to avoid these types of issues. The Credit Union is a good idea.
But first I want to know did you approach Sponsor who owns 51% maybe he would be interested in buying.
Second. My building allows subletting and renters. AKA investors. Investors unlike primary home owners often buy cash. Higher rates for investors and lots of headaches. Does you building allow subletting? Are there restriction? Given we sell units that way in my building if the unit is in a decent location and maint not to high I could pass the info on to the investors.In fact one guy is looking for a coop with liberal renting rules which is hard to find.
Also did you post an ad in buildings laundry room or something. Sometimes folks in building are more likely to buy. Lets say Mom is getting old and kids live in building already. Folks trading down often have cash. Many years ago when I lived in a coop when mortgage were hard to get in 1992 folks in neighborhood trading down from a house to a coop often bought cash.
Hi
I own in a co op that has similar issue. I have been working on this issue and am knowledgeable about the options.
Do your fellow shareholders speak up at annuals? Have you asked the sponsor to sell?
How many board members are there? How many sponsors sit on the board?
Rhona
Hi
I own in a co op that has similar issue. I have been working on this issue and am knowledgeable about the options.
Do your fellow shareholders speak up at annuals? Have you asked the sponsor to sell?
How many board members are there? How many sponsors sit on the board?
Rhona
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Hello, I am in Canada; may be different up here. The big banks (TD, Bank of Montreal, CIBC) will not extend financing here to co-ownerships so similar boat. When we recently had a purchase and the buyer, distraught that a bank would not finance them, I recommended they go to a credit union (which you also have in the states) and the sale went through with no issue.Credit union banking institutions are experienced at dealing with co-ownerships and finance them. I myself used a credit union, which I was not familiar with before I bought my unit.
The alternative is that you re-finance the unit yourself with a credit union to get some cash out of it and then lease the unit.
Don't let your unit go into a legal proceeding; you have been their 30 years and you have made some money - don't lose it.
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