500 Fourth Avenue Closing Date

gigi- You can lock in rates before you close, no? I just did that.
I luv all the color's so far too. It's exciting to see the progress when you visit.

gigi- ps- I mean you can lock in your interest rate as long as you are within your loan's required lock in period ( 60 days, I think is pretty standard)

Hi all - quick update on the financing front. M&T is now authorized to go ahead on conventional mortgages with 20% down. After speaking with the agents the other day it seems that they were hearing enough grumbling from buyers to finally do something about the situation.
took a look at the building earlier this week. my unit on the 8th fl isnt nearly finished but I was liking the finishes that i did see & the gym glass is a nice touch. A couple of guys were also doing the final paint on the club room.

Hi ciaokt. well it is too early for me to lock in a rate since I have no idea when I would be receiveing a closing notice, but I spoke with both M & T who now offers the 20 % down and chicago group. Rates are looking really good.

hi gigi. I'm thinking 5% interest rate give or take a bit would qualify as really good- Does that sound right? have a great weekend!

Yes, it's well below the historical average.

Any closings happen yet? Anyone move in?

I heard closings are scheduled for June 3 and the TCO is "apparently in" for the whole building. But only the TCO for floors 2 through 8 are listed on the City's website.

winter-Thanks for the update. Im on 9th floor so I guess I just have to sit tight, be patient, and hope for the best. It's good to know things are moving along!

We are closing 6/11 (assuming we get cleared by the lender!) I asked Karen (our sales agent) about moving in details as we would like to start moving in that afternoon and the next day. She referred me to Marc and Gustavo at Cooper Square Realty- whom I understand are the Property management for the building. I asked them for some info/details about moving in, and was surprised to find out that there is a moving in sequrity deposit (which is refundable as long as you don't do any damage) of 1,000 if you have hired movers and 2,500 if you are doing it yourself! The also require some sort of certificate of insurance from delivery companies?? I'm still waiting to hear back about what that means... I am so frustrated at this point!!!

ahw, the insurance from movers is typical and so are the deposits. it is done in all coops and condos. my movers charged me $100 for the policy. don't worry about that. when they talk about moving, they really are talking about the big furniture not just reasonable sized boxes (Home Depot) or bags with clothing.

Has anyone closed on a loan with M&T yet? Seems like there are unexpected delays here and there for me.

I was just by there today and discovered the first person (people?) moved in today. The gym equipment is mostly there and the place looks great. Have to admit, I'm excited!

ahw001: the security deposit for moving-in damages may be common practice, but I agree, it's another frustrating obstacle to moving in. As a renter, I've never experienced such a thing. If you damage the place moving in, the landlord will ask you to pay for repairs, but that rarely happens. Will there be someone to monitor the move to see what damage you've done?

Speaking of damages, anyone concerned about construction defects? A thorough walk through before closing might be essential.

Jake --I am using M and T also. I am in the beginning of the process so I can't say much yet. I'll let you know as things progress. There really aren't a whole lot of other options out there so i do hope things progress fairly smoothly with M and T,

I am having issues with M&T as well. My attorney said they are easily resolvable, but not sure if I can close as scheduled (I am scheduled for next week). Frustrating.

For those of you closing soon -- have you done a walk-through with a punch list? How long before closing did you/should you do this? And if you found defects, was it easy to get them fixed before closing?

I did my punchlist walk-through. Very easy. The contractors were helpful. There were no major issues, and they even fixed a few of the minor ones while I was in there. Not sure how long bfore closing you should do it. My attorney advised 24-48 hours, though I did mine earlier than that.

How did you do the walkthrough before the financing with M&T was fully in-place? I am trying to get the final issues resolved before scheduling a final walkthrough/closing date.

What were the minor issues you found when you did your walk through? Did you hire a professional ( engineer / contractor or other) to do it with you?
Also there was a recent NYTimes article about the multitude of construction problems with balconies on new condos- did anyone see it?

My minor issues were a few nicks in the floor and on the baseboards and a couple of screws that loosened a bit, all easily fixed. I went with my broker, who's done these a million times and knew what to look for.

My M&T financing is in place. It was right after the walkthrough that I found out about issues that I have no control over..someone, somewhere, had the wrong something or other and needed something from someone. I was assured by my attorney that these issues are easily fixed.

Thanks Rick. I'm happy to hear that nothing major went wrong and that everything is going relatively smoothly. And congratulations you are almost in !

We are doing our walk through Tuesday and are scheduled to close on Friday! We are still waiting on the "clear to close" but I've been told that can happen right before... Who have you guys been using for the home owners insurance? We were given a price of $360 (I assume for the year) and I have no idea if it's reasonable or a lot?

That sounds reasonable, my quote was $330.

ahw, how did your walkthrough go? My closing was rescheduled for next week, *hopefully* for the final time. We are getting close..
Oh, I am using Allstate for insurance.

our closing was rescheduled too- not happy about that- especially because we've been waiting SO LONG and it didn't really help that nobody really wants to take responsibility for the delay- the appraiser blamed the sales team, the sales team said they weren't keep in the loop by the lender, the lender said he weas waiting for documents from the builder, etc. oh well...
the walk through went ok- we found a couple major things- an area of of floor had an airpocket so they had to rip up a whole section and re-level things, and there are a couple serious scratches in our marble countertop that need to be buffed out- other than that it was all minor stuff like touching up some areas of the molding and wall paint, tightening the fixtures in the bathrooms...

oh- also, make sure your H06 is the the appraised price of the unit- I didn't see how it would be different but apparently it is?

ahw -- did you do your walk-through with a professional inspector? We are trying to decide if need to hire someone to do the walk-through with us.

we did it on our own but my fiance used to work in construction so he felt very comfortable knowing what to look for...

Has anyone closed yet? Have they sold enough units yet so that lenders will finance?

Many of the banks were initially offering only FHA, but now there are several offering conventional loans. There have been several closings and it looked like (by walking by the building) at least one person was moved in. I should have closed a week ago, but the date was moved until next Monday. I had a similar experience with my walk-through as ahw. We had a fairly large chip in the marble that they will attempt to repair or replace the whole counter. There was also a fairly large scratch/gouge in the hardwood. But in general, the place was actually pretty well done. I was pleasantly surprised that the gym was basically completed.

I have been told that several people closed and moved in last week- it looks like a few of us were delayed from last week and pushed to this week. We rescheduled for this Thursday and I have been assured that we will not be delayed again...but I guess I'll beleive that when I'm sitting on our couch, enjoying a chilled glass of wine from the wine fridge! haha oh- thought I'd pass along the name of our super- Juan. We met him Sat and he is REALLY nice and helpful- he's definitely the go-to guy for any questions about the building!

My closing was moved from last week to this one, and fingers crossed that it is not delayed again.

rick- have you gotten the "welcome package"? I am trying to figure out why the taxes and common charges are different than the specs given to us by the sales team... the common charges aren't off by too much-like $7 but the taxes are a LOT different.

yikes! we close in early July (I think), how much different?

the spec sheet for our unit said with the tax abatement it should be something like $11/mo but they are now saying something like $144/mo! I am having my lawyer look into it....

Hi ahw001, My Lawyer explained to me before signing how the tax abatement worked. basically when you first move in your going to pay the true $ in taxes until the property is no longer listed as 1 lot. the down side is you pay the true amount, the upside is, once its allocated into units and the abatment is in place you will get back all that $$ you paid out (minus the 11 dollars) or so for each month. This may take a few months. Hope this helps a little.

Thanks Gigi. I got the same deal with the taxes. So we would get that money back when the abatement is in place?

My closing is today and plan to move in by next week. Looking forward to FINALLY being in and eventually meeting you all!

Hi Rick189. Congrats on your closing today!!! I am jelous! I am still waiting for the closing notice.
You should speak with your Lawyer anyway about the tax abatement just to be safe. The information I was given by my lawyer was over a year ago when I signed and you know things can change. I think I would have heard something if otherwise, but you never know.Just make sure.

well, my closing was supposed to take place at 3pm today. Around noon I was informed that some sort of "mechanical lean" had been placed on the building TODAY and that none of the closings that we scheduled will be allowed to proceed until it is resolved. Apparently its a 500,000 amount of money owed. honestly if I wasn't this invested I would pull out.

Same thing happened to me today. How long do you think this will take to resolve?

That's Terrible news!

I have no idea... everyone is saying something different. I think the sales team is being overly reassuring, my lender wants to me because he doesn't want me to freak out, and the lawyer is saying that sometimes these things take a "while" to resolve since it's such a large amount of money. From my limited understanding, a lean is not something that happens overnight- obviously the builders had to be getting notices that there were outstanding bills. It's not very reassuring to know the building (which isn't 100% complete) is already having trouble paying for the work that's being done! And for those of us who were supposed to close today to be put through ANOTHER delay due to their negligence is unacceptable.

I was literally walking into the lawyer's office for the closing when my own lawyer called to tell me about this, and I am beyond livid. I was told that it could be resolved quickly - Jake is right: obviously, the sponsor wants to get people in - but at this point I have no idea and I am angry beyond words. I know the attorney whose office I went to today had several closings that are now held up also.

As I heard it, a contractor was let go and wants to be paid, but the sponsor says his work wasn't good and doesn't want to pay him, so he filed this Mechanical Lien that serves to upend all of us. Who knows what the truth is. The only thing I know for sure is that I will be at a bar tonight, drinking more heavily than I have in a long, long time. This is ridiculous.

If these guys go to court over this, we are screwed and probably won't be able to close for months...

If that happens, I will be out looking for a good refrigerator box.

Also, as I've said before....VERY grateful this board exists.

My attorney hadn't been informed (yet?) of the lien. The bank said they are aware of the lien, but working under the assumption it will be cleared for my closing on Monday. The management company said that hopefully it will be cleared up "early next week". I guess we'll have to just wait. My original closing date was the 3rd. Ugh.

This is unreal, maybe surreal. Not sure what is the most appropriate "insert exasperated adjective here" at this point. We were supposed to close early this month only to find a major section needed to be redone to correct something. Now we are supposed to be scheduled for next week. From my understanding, if the seller cannot convey unencumbered, marketable title at closing, a buyer has an option to terminate the contract. Now that depends greatly on how your sale contract was worded and if you or your lawyer made any changes to the terms.

Am I the only one worried that if the story about a contractor being ‘let go’ because of crappy work is true, that this crappy work may pop up in the future and cause problems. We should all inquire as to what this contractor was working on that caused the sponsor to give them the boot so our own inspectors can be on the alert. I am praying for us all since we need all the help we can get apparently.

Agreed. 500 Fourth is beginning to feel like the twilight zone.

Sounds like this building may go bankrupt!

yea , u couldn't have said it better.this has been some freaky ride without the joy.every part of this venture from reserving a unit down to the closing date and this mess has been an exhausting process. I AM REALLY SICK OF IT

The only adjective I have left is unremitting anger...still furious that my closing was cancelled at the moment I was walking into the office to complete it. However, I really don't think there's a need to worry about a contractor's "crappy work." We don't know what happened...for all we know, it might be a contract dispute that was misreported. Everything I have seen, in my unit and the building in general, has been fine or relatively fine, and that's something I choose not to worry about. I could be wrong, but right now I just want to get IN already. Jsomma has it right: I'm exhausted.

outrageous outrageous outrageous.if i went to my closing rick189 and had that happen i'd be locked up.tired of the bullshit and lies,i was told that i would close in november imagine the audacity to tell me that and worse me believing that.9 months later and this crap, they really dont know how to deal with their buyers.

Does anyone else feel that the brokers constantly lie, it all seem a little shady.

I don't think so. They want this all to get done too. I expected some delays and initially hoped for March, but then May rolled around and I got annoyed. Then June and this crap which is infuriating. New construction has these risks. They suck and I will never buy new construction ever again after this, assuming this does get done.

Don't we need to close by June 30 to get the homebuyers credit?

I found this link:
http://www.savingtoinvest.com/2009/02/15000-first-home-buyer-tax-credit-in.html

Does anyone happen to know if I went into contract last year but aren't closing until next week (hopefully), would I fall into the max 75,000 income level or the 125,000 level that the extension has? The IRS site says if you purchase this year then it's the 125,000 limit but I don't get if "purchase" means when i signed the contract (hopefully not) or when i actually close and take possession (hoping I fall into that one).

This is one reason to hire a professional inspector. A good inspector will check for liens on the building from disgruntled contractors and former employees and pay special attention to the work they may have done poorly. Not doing so is penny wise, pound foolish. Regarding taxes, we've been told that the tax abatement doesn't kick in until the C of O is issued, which can be months or even years after the TC of O. In the meantime, however, you can apply for reduced taxes. Our attorney is looking into this. Regarding the closing date, the Sponsor's attorney is confident they'll get us in before June 30th, but if they don't it will cost them. But I don't think it will drive them into bankruptcy. It's a great building and it's selling well. These are just birth pangs.

You do need to close by June 30th to get the first time home buyer's credit, but some contracts were written so that if you don't close by the IRS deadline the Sponsor will pay you the credit. Another incentive for them to close before June 30th.

Anyone planning to do work on their apartment prior to moving in, such as painting, window treatments, etc.? Any tips? I found a local window treatment manufacturer, Liberty Valance & Blinds, with great values. With Hunter Douglas you're paying twice the price for brand image and marketing.

Winter, it is still a long road for this building to be financially safe. There are still many unsold units that the developer will have to carry the cost for. Considering the amount of time this building has been on the market and the current economy, I would think that they would need to do a major price adjustment to get more units sold. If they can't sell more units and there is not enough money in their reserve fund how will they be able to keep the building financially secure? When you say selling well, what do you consider selling well is? What is the ratio to of sold units to the # of units in the building?

Considering economic conditions and the special risks associated with buying into a new development I think over 30% sold at the time of the first closings is selling well. Not only that but they appear to be selling closer to the asking prices than they did nine to twelve months ago, as they should since those who bought eight or nine months ago were assuming even greater risks than those who are buying now. I don't expect the building to sell out for years, but as long as they continue selling two or three units per month they should keep the banks happy. The banks stand to gain more by keeping the building out of bankruptcy than they do by driving them into bankruptcy.

In case you missed it, the TC of O for all floors appeared on the NYC gov website a few days ago.

Any word on when this mechanic's lien issue will be resolved? Is this looking like something that will take days, weeks or months?

My attorney thinks it may only take days. In fact, there may be a chance that I will close on Monday as they were working to get it resolved on Friday. But most likely it will get resolved Monday or Tuesday, but you never know -- especially with the way things have been going.

Our attorney was also told that they hoped to have it resolved within days, but ediacara's right, you never know.

viper220: I think the income limits to claim the first time home buyer's credit apply to the tax year in which you claim the credit. So, if you claim the credit on your 2010 tax return, which you must file by April 2011, then the income limit would refer to your income in 2010. A purchase agreement is not a purchase; you haven't purchased until you close. Also remember that the income limits are for adjusted gross income (AGI), not gross income, which would be much larger. But you should check with your accountant.

I just was told by my attorney that he spoke to the sellers attorney this morning and there is still no resolution- now he's hoping by next week. given the way everything has been delayed in this building, that probably means that next week they will be optimistic for the following week, etc.... this is a nightmare

That is unacceptable. Next week is when my lease runs out, not to mention the first-time home buyer's credit. I might go knock on the developer's door and stay with him. I think we all should.

Thank you!!!

Apparently the homebuyer's credit has been extended to September 30. Also my attorney says the Certificate of Occupation must be given within 60 days of when they begin closings. So basically we'll only be paying two months worth of regular taxes before the abatement kicks in.

I still haven't gotten much more information than my closing for today was canceled and will be rescheduled for a fourth or fifth time. My attorney did express concern that since this wasn't resolved by today that it may be more complicated and take longer than a couple days.

My lease expired 6 days ago.

Anyone contact Michael yet?

I plan to send him a note this afternoon. Still trying to figure out how angry to make the note.

Might be more effective to call him. Let's all try to keep our cool and just try to find as much information as possible.

I just spoke to my attorney. They are trying to get the lien bonded - get a bank to lay the money out. It's taking a little time (apparently a sizable sum) and they hope to have it done by Wednesday, in which case my closing would hopefully be Thursday. I am done trying to even predict anything, so I will wait and see since I really have no choice. I sent my letter to the developer to my lawyer to review first and then will send.

thanks for the update rick- if yours is Thursday hopefully mine is too since we were both scheduled to close last Friday... but you're right, I'm not holding my breath! The problem is that for some reason I always want to think the best of these "updates" and then am so disappointed when things fall apart.

also, my fiance remembered something from our walk-through that may be the explanation for the lien- Marc, the construction guy who walked through with us and my fiance (who now works with HVAC equipment) were talking about the a/c system and Marc told him that the builders were unhappy with the original company contracted to install the HVACs so a new company was brought in about a week before we were there and quickly got everything up and running (so now a few weeks ago)... I'm just guessing but it does sound suspicious! It also makes me less concerned about the previous posts questioning the integrity of the building's construction if this is true. just thought I'd pass the info along...

That might be a different issue, although who knows. All I know is that I can't...freaking...close.

Let me caution you...Thursday is "best case" for me. If there's a worse case, I don't want to know what it is right now.

We're in the same boat as everyone else and just as pissed. Our attorney thinks that even if they get the bond by Wednesday that there could still be delays.

Ha, we were written about on Curbed:
http://ny.curbed.com/archives/2010/06/21/diaries_of_disgruntled_buyers_the_hottest_summer_beach_reads.php

That's interesting that the article was published yesterday and quoted the sales rep as saying the lien issue was resolved, because when my attorney talked to them yesterday around 4pm there was no resolution.

The Elliman team has suddenly disappeared, not responding to any calls or e-mails. Anyone contact the developer yet to see what's going on?

I got a pseudo-form letter assuring me that the issue would be resolved soon. Hopefully if more of us put pressure on him, it might help. Maybe. I threatened to pull out entirely, fees be damned. I am so fed up.

I just got an email from the real estate agent saying that the sponsors attorney will be contacting my attorney to schedule a new closing date. However, it didn't say the issue was resolved, only that: "this issue is getting resolved".

yup- my attorney just e-mailed me saying that it was NOT bonded yet and the absolute earliest would be by friday but he wasn't hopeful. Whomever gave that statement to curbed should be fired.

this reminds me of when my atty said he did not approve of my purchase of a new condo--contract stacked in complete favor of dev'per, and in disfavor of buyer---

so when is everyone rescheduling? I got in for Wed late am- after all of this is over we will probably need to have 500 fourth support group meetings to deal with the PTSD this will surely have caused....

Your closing is set for tomorrow morning? So they bonded the lien and are ready to resume closings?

I believe it's next Wednesday.

sorry- yeah, next Wed- our lawyer was told this Fri at the earliest and they couldn't give anything definite so rather than reschedule AGAIN he suggested doing next week.

I know it's aggravating and discouraging but I've been through this several times before. It will happen--you just lose several years off your life in worrying.

viper220: Where did you see that the deadline to close to receive the first time home buyer's credit has been extended to September 30th? The IRS website still says the deadline is June 30th: http://www.irs.gov/newsroom/article/0,,id=204671,00.html
Also, I wonder if your attorney is correct that the Certificate of Occupancy must be issued two months after the TC of O (thus activating the 421a tax abatement). That's not what I've heard from other real estate professionals.

I'll ask my attorney again about the CoO but he seemed pretty sure. And the extension can be found here, although upon reading it it still needs to be signed into law:

WASHINGTON (MarketWatch) -- The home-buyer tax credit deadline would be extended three months following a Wednesday vote in the Senate. Senators voted 60 to 37 to approve the extension for the credit, which has a current deadline of June 30 to close a purchase. This extension would apply to people who entered a purchase contract by April 30. "By extending the transaction deadline, we can ensure that everyone taking advantage of this credit can complete the purchase of their new home," said Democratic Sen. Harry Reid of Nevada, one of the motion's sponsors, in a statement. The credit provision is part of a larger jobs and tax package that both chambers must still vote on before it becomes law.

http://www.marketwatch.com/story/senate-oks-extending-home-buyer-credit-deadline-2010-06-16

The Senate approved the extension. The House has not, and it's up in the air whether or not they will.

has anyone heard anything today about the lien?

I got a confirmation email from my attorney on closing next Tuesday. I assume this means it was resolved.

Has anyone here cleared a conventional mortgage yet? Or are you guys who've scheduled closings going the FHA route? My conventional mortgage is taking forever to push through because the building was missing things that Fannie Mae requires (like money in reserve and stuff like that).

I got my confirmation yesterday but it had not been resolved.... which is what concerns me!