Co-op boards (apartment, coop, lender)

[Prof. Knitwit]

Hi all,

This is my first official post to the forum, but I've been lurking for some time!

Anyway, my husband and I just got the exciting news that our bid on a coop in Riverdale was accepted. I was wondering if any of you could give me some insight into the coop board process, what to expect, etc. I've been told that it's easier than if we were to go in front of a Manhattan board, but what kinds of questions could I expect? Is there anything that we should look out for?

Any help or advice that you could provide would really be appreciated.

Thanks!

[Otis_Nevins]

The purpose of a Co-Op board is to protect the interests of the Co-Op. It's also to stoke the egos of those on the board... They want to know EVERYTHING about you, primarily the following: How much money do you make, from which they will extrapolate your ability to pay the monthly Co-Op fees (more important to them than you being able to pay your mortgage). What do you do for a living? Some Co-Ops don't want lawyers in their buildings, some don't want rock drummers, some don't want all sorts of people (note: this may well be illegal, but it also may be difficult to prove). They might not want kids. They want to make sure that you can be counted on to support the Co-Op, meaning: paying your dues.
Also, they will explain the rules to you and make sure you agree with them; they will want to make sure you're not going to flip the apartment, either.
Bottom line: you bid was accepted, you thus should have the means to make the right payments. Should be any problem with the board.

[GOLewin]

Hi Prof. Knitwit,

I recently had an offer accepted for a co-op in Riverdale as well, and I was wondering if you've already met with the board and what that experience was like... Do you now have any tips or advice to offer?

[Viralmd]

The board doesn't need to ask how much money you make - they already have detailed financial statements and tax information that you've provided.

They want to see if you're the kind of person they'd be happy to have in the building. Thus, you want to dress nicely, shake hands and look them in the eye when you do. They want to know what kind of people will be shareholders in the building and that they're not letting in people who play their music loudly at midnight or have parties every weekend.

[BK2Westchester]

what viralmd said...

now when you get your nod the fun begins... your lender will want a ton of paperwork on the coop- offering plan, last few ag amendments, 2 years financials, questionnaire.. then the appraiser will want another questionaire... KEEP COPIES OF EVERYTHING as differant people may ask for the same thing and if you go back to the management company they may want to charge you for more copies... this is on top of the application fee.. try to find a lender that has already approved the bldg (although they will go through a process for every sale). Typically closings on coops take FOREVER- meaning your rate-lock expires (get ready to pay to extend), and incentives are out the door, etc... thank the lawyers as in my experience they are the ones that hold it up. when you're happy to have gotten your board approval and the lender's "clear to close" and have the happy feeling in your stomach... HERE COMES THE BOARD LAWYER WITH THEIR CLOSING REQUIREMENTS! hahaha

i hate them all!! hahaha hahahahahahaha

going crazy.... shoot shoot kill kill!!!!!
hahahahahaha

ok... i feel better now...

[Prof. Knitwit]

Hi there,

So, since my last post, we were accepted by the coop board - yeah! We now also have a closing date for mid-June so that's exciting!

GoLewin - I think what made our experience so easy is that we really put together a great package. We went above and beyond what was required. For example, we were required to get 3 professional letters of recommendation - my husband and I actually EACH gave in 3 professional letters of recommendation. Plus, the 3 personal letters of recommendation; 1 letter from our bank, an 1 from our current landlord (all required).

Since we also know nothing about financial stuff, we hired our accountant to fill out all of the financial paperwork for us - but then we provided backup hard copies from the investments themselves. So, they had a certified letter from our accountant as well as documentation for any of our accounts. All VERY intrusive but it made the coop board interview very easy.

When it came time for the interview after doing all of this, it was really a snap. They wanted to know more if we had questions for them. So, it was a little nerve-racking at the time - but the interview itself took only 20 minutes.