On Streeteasy Property Glossary the following is stated: Initial Co-Op UCC1 A document indicating that a loan has been issued for the purchase of shares in a co-op. For co-ops, UCCs are issued in lieu of mortgages. Initial UCC1 The security agreement which a bank or lending agency files with the New York County Clerk’s Office to indicate that if the borrower sells the property before he has repaid... [more]
On Streeteasy Property Glossary the following is stated:
Initial Co-Op UCC1
A document indicating that a loan has been issued for the purchase of shares in a co-op. For co-ops, UCCs are issued in lieu of mortgages.
Initial UCC1
The security agreement which a bank or lending agency files with the New York County Clerk’s Office to indicate that if the borrower sells the property before he has repaid the loan in full, the new property owner will owe the balance of the loan to the lender. If the borrower defaults on a payment, the UCC1 authorizes the lender to seize the property.
So if the coop I'm looking at has a "Initial UCC1", that means if the seller doesn't pay his original mortgage, the bank can seize the apartment from the new buyer? That doesn't make much sense to me.
What if the seller needs to sell the apartment in order to repay the original loan?
Or, does the bank/lending agency filing a "Initial UCC1" indicate that the seller has been defaulting on payments so they're preparing to seize the property in case they try to sell it?
Any experience or thoughts here?
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