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Hello: As a Board member, we've been informed that one of the units in our building is in contract; however, it's one that was in foreclosure and priced well below the market value of its compared units in the building and neigboring coop apartments. I realize that coop boards have some latitude in rejecting an application based on the sale price of units being too low that it would adversely impact the corporation; however, would foreclosed units apply as well?
Join the Conversation Comments (4)Absolutely not, the board who is trying to set a minimum price acceptable for a coop is trying to manipulate the market, this is called "prixe fixing", and forbidden by law. Ask Mary Ann Rothman, of the Council of New York Cooperatives, she will give you the rules and cases. Jerry Marel
Yes you can. If you are in New York County, price is a valid consideration. You are best to reject before the interview is called however so one can’t be accused of discrimination.
In today's marketplace where a real estate agent is not always used and sales data is on publically available databases open to anyone, not all will have the information necessary to disfurnish this sale from a regular sale. Approve this sale and see your Trulia and Zillow values decrease right away.
I think that is my point – the marketplace is changing and yesterday’s advise may not be good anymore. Don’t set a price, just say “no”.
Just to clarify, the unit was foreclosed by the bank (the shareholder walk out of the unit), and subsequently purchased by Fannie Mae. They used a real estate company to market the property and found a buyer. So, it was advertised on the open market as a regular sale of a coop.
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i cant see how forcing a shareholder into a foreclosure, when they have a buyer, and they think a foreclosure is going to sound better. On a private sale, the prices are not even listed, only the ones through real estate agents. A foreclosure sale, prior to the sale shows up on any of the online real estate search engines over google maps. I cant see how that would stand up in court., but as usual the shareholder doesnt have the money for a lawyer and will get screwed when they shouldn't. Another reason for a coop ombudsman, where this would be addressed and the board would even think of doing it.
If i was the shareholder i would broadcast this tactic using public media, and elected officials , if any in the area will even listen, they do in NYC, they dont in my area of westchester.
I would have a blog all about this situation, the trend in america nowadays is to stop foreclosures if possible. It sure would make the building seem very undersirable and one most buyers would skip IMO.
It would make a good media story, does the board want to bring that upon the building. It may not be considered a good fiduciary decision if another seller sale is lowered from the foreclosure.
Screw these boards publicize their prejudices,racism, self-dealing,religious discrimination, Fraud on multiple levels, woops that is my co-op
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