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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