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Ted,NJ
There is also reserve mortgages available for co-ops for Sr. citizens. This is not just an exclusive type of tapping into equity for condos and single housing.
Finally, I know it was for argument sake, but it is important to clarify that the underlying mortgage will have to be divided by shares. In some cases, co-op ownership is a first step type of ownership; therefore, many shareholders may not be in position to absorb the burden of a very large mortgage. Therefore, they will either have to sell or else...
AdC
The AARP booklet that details reverse mortgages (Home Made Money)is available via a telephone call to ARRP at:
1-800-209-8005
In our process, we have suggested that all who have an interest in reverse mortgages call AARP for the booklet. This is in lieu of obtaining a supply and then distributing the booklets; which in our mind crosses the line and then becomes "promoting reverse mortgages".
This was my first clarification point, i.e., rerverse mortgages are not just exclusive rights of condos.
AdC
Sorry, I really reversed "reserve".
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My point in showing the full financial burden attendant to a conversion of a coop to condo wherein the coop has an underlying mortgage is that some folks will not be able to absorb the higher “mortgage principal” demanded by the need to retire the coop‘s mortgage and perhaps fund neglected capital expenditures.
A bank, worth its salt, will not write mortgages for a building in disrepair. And, let’s not forget, a condo/HOA and virtually nil borrowing power. All that an HOA can pledge is its future income stream.
While the owner’s reap a substantial number of benefits, the HOA is somewhat more constrained in its actions.
Yes, only condo owners (e.g.: deeded property owners) can avail themselves of a reverse mortgage, a selling point for conversion. The AARP offers some very good and very simple literature.
Yes, 100%, the shares dictate the apportionment of all costs, save the shareholder’s own fees incurred in a conversion, e.g. title insurance, mortgage appraisal, filing fees, attorney fees and any bank fees while rolling a coop loan to a condo mortgage.
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