Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Hi all; Can someone help me out with a question/issue that I am currently dealing with.
I have a buyer wanting to buy my co-cop apartment and they are already in the process of securing a mortgage at this point. However, the bank is asking me (the seller) to provide Audited Financials for the co-cop or they will not be able to proceed further.
The Financial documents that I have from my co-cop have phrases like "compilation report" and "we have no audited or reviewed" so because of this the bank is not willing to approve the mortgage Unless, the co-op provides either Tax returns or Audited financials, and the co-cop is not willing to provide any of this. Which means I am not able to sell.
My question is,
1] Is this normal for a co-cop to do things like this? it had never come up before until now.
2] Is this standard procedures for banks to ask tax returns or audited financials?
Practically the co-cop is locking me in from selling the apartment since they are not willing to provide tax returns or an audited version of the Financial documents. What are my options here and what can I do? They are telling me to ask the buyer to find a different bank but who's to say that the other bank will not ask for the same information or if they will be ok with an un-audited version of the financial documents.
Anyone has gone through something like this or has experience in dealing with this kind of things?
Anyone has gone through something like this or has experience in dealing with this kind of things?
I suggest that you carefully read your co-operator agreement and see if this is something that the corporation can refuse. My guess is that it can and you'll have to tell your buyer to find another lender or you get to find another buyer. And, no, there's no guarantee that another lender won't want the same thing.
When you bought the co-op did your lender want audited financials? No? Then that's a good bet that other lenders won't want it either.
I suggest that you carefully read your co-operator agreement and see if this is something that the corporation can refuse. My guess is that it can and you'll have to tell your buyer to find another lender or you get to find another buyer. And, no, there's no guarantee that another lender won't want the same thing.
When you bought the co-op did your lender want audited financials? No? Then that's a good bet that other lenders won't want it either.
My coop has audited financials done every year. I always assumed it was a legal requirement. I might call the state attorney general's office (they provide what little regulation coops and condos get), and ask them.
Edit: Apparently no legal requirement, but may be required by the coop's bylaws or proprietary lease. Read those.
As an owner in the co-op, aren't you entitled to see the audited financials annually? Isn't there an annual co-op meeting where the financials are presented to the owners? We had annual meetings in the co-op in which I lived.
Why would Covid need the requested documents, that makes no sense?
Let me rephrase. With COVID there could be more risk for property purchases in NYC if people bail or delay monthly maintenance fees. Therefore underwriters at the bank now want to see proper co-op financials so they can get an idea of any added risk.
Let me rephrase. With COVID there could be more risk for property purchases in NYC if people bail or delay monthly maintenance fees. Therefore underwriters at the bank now want to see proper co-op financials so they can get an idea of any added risk.
Other lenders may not care.
Thanks for the clarification..
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
