be@Schermerhorn

I'm meeting with my lawyer today to sign the contract on a 1bed/2bath unit. Negotiations brought purchase price down 9% with about 60% closing costs covered. My FHA lender is Wells (non-preferred) because I got the best rate (4.25, no points).

Given that we are early on in the process, I wonder if a target closing date of Nov 15 sound reasonable?
Anyone know if the building allows movers on the weekend?

NYCRazy - From our mortgage shopping experience... I got a flat out NO before I could finish a sentence from the big banks like Citi and Wells until the building is "at least 70% in contract". We are going with one of the preferred lenders, and I have to say I am pleasantly surprised by the service we've been getting so far. We ended up going with a 10/1 arm at 4.5%, 1/2 point paid up front that is refundable at closing.

gate27 - We just recieved a copy of our appraisal and it came in at $26K more than our purchase price.

armstrongr - The last I heard from the building, they are working on punch list items and are looking to send out closing letters by the end of September. Although, I've been hearing this for a month now.

Sounds like a lot of you are shopping for lawyers...I would highly recommend ours if anyone is interested. He is handling other contracts in this building and is familiar with the players.

Have fun at the happy hour, we'll catch you at the next one!

I'm about to sign a contract on a 1BR with office. My lawyer is nervous about the building because of the risk of lock-in. The big banks want to see 70% _owner_ occupancy (as opposed to rental units) to make loans to those who would buy from me in a few years. The condo plan has a clause that allows them to stop marketing apartments and rent them at any time, so the nightmare scenario goes like this:

1) I close in November, and the building is only 50% owner-occupied.
2) The real estate market slumps, and they can't sell the remaining units fast enough.
3) The sponsor starts renting units, or the remaining units just sit there unmarketed.

The rental units can't be sold because they're rented. Or they're not trying to sell the other ones. I can't sell to anyone but a cash buyer because no one can get financing because the building hasn't hit its 70% owner-occupancy yet. And I can't rent because the sponsor is renting five other units just like mine for less than I can afford to rent them for because I have a mortgage and they don't.

Anyone have any thoughts on this scenario? Is my lawyer paranoid or is this a real concern?

How many people are planning to go to the happy hour tonight?

Anyone check the sex offender registry? Multiple sex offenders living nearby on Schermerhorn street for some reason.

"Is my lawyer paranoid or is this a real concern?"

Your lawyer is right. In that scenario, you'll need a cash buyer, which are pretty rare.

Basic question from a first time condo shopper interested in Schermerhorn - did you guys require an inspection as a contingency with your offer letter? and did anyone give a promise of an earnest deposit w/ their offer?

really appreciate any help you can give!

and armstronger - i'm amazed you were able to get a 9% discount! the sponsor seems pretty rigid...

Armstronger, did you go with Wells without a contingency? Or did you get the contingency clause modified?

Has any gone through with a non-preferred lender without a contigency? If so, do you have a back-up plan?

I'm still working on getting mortgage approval. Wells Fargo is quoting a 4.375% rate for a 30 year fixed.

Thing is you still need to have a loan approved by a preferred lender to protect your 10% downpayment due to the contingency in the contract. You can look into getting another lender, but most likely mean you pay twice the application/ processing fee.

Micallef, your lawyer sounds way better than mine. Mine just keeps telling me it's a standard contract. Told me to come sign it only 2 day after receiving the offering plan etc. Not convinced he actually read it closely or did due diligence.

Ok, so basically, from my understanding with their lawyers is that you can go with any outside lender, but you will lose your contingency rights. I'm okay with this because if I'm looking for a lender outside (it's only because I'm looking out for myself, but at the same time, there's a risk.....However,if I'm buying a place, and signing up for a loan (for alot of years), then Iwant to make sure that this is done right....

For those who are going with their preferred lenders, it's a point and their rates are definitely high...

Also, I don't believe all the hype with their ARM rates because a) god only knows whats gonna happen in the next 10 years...if the rate is at all time low at this time, then you better off locking this rate in... Don't fall for the trap....

some updates:
First, forgive me but our discount was 2.5% against purchase price; I meant to say 9k discount rather than the 9% I quoted earlier. We did get more than 50% closing costs covered, but it still leaves >10k for us to close.

My wife and I had a sobering conversation with our lawyer regarding the contract. There are a number of flags, and I'm listing them in order of severity
1. In the latest amendment to the deal book, it lists only 18% of units as having sold. This is much lower than what Corcoran has said verbally (which is over 50%). My lawyer is going to inquire about this. But to have only 18% in writing is a concern.
2. The 30-day mortgage contingency is definitely a risk. Will attempt negotiating if we move forward.
3. There is only a temporary certificate of occupancy on the building. This could be a blocker for a lender.
4. The lender must do what is called a CEMA, which relates to the mortgage transfer tax. This could also be a blocker for a lender.
5. There are 21 easements on the property. This is a pretty high number, although not extreme. My lawyer has done 10,000 deals and he said about 3,000 properties have this many or more.

we are hoping 3 and 4 work themselves out with Wells and that 1 and 2 improve through further inquiry and negotiation. 5 doesn't seem to be too big of a deal.

Coregirl77, If you don't mind referring, who is your mortgage broker with Wells Fargo? You can email me at liqiudnyc@gmail.com Thanks!

got some good news: the number of units in contract is currently 52%. There is also no sponsor mortgage on the property, which means that the sponsor is more likely to hold out to sell rather than having to opt to rent.

has anyone negotiated an extension of the mortgage contingency?

Here is a great calculator for help in deciding if a fixed or adjustable rate mortgage is right for you:
http://www.bankrate.com/calculators/mortgages/compare-arm-or-fixed-rate-calculator.aspx

Ummm.. after the 1 week appraisal wait time, the bankis not going to give us the loan BECAUSE the projected "October 1st" move in date is not plausible. There are permit problems with the building and NOW I am pissed! Gotta move in with family until they close or I get my money back!!! Just found out an hour ago!!!

Looks like we'll be on as preferred lenders soon. We can starting funding loans once the building is 51% in-contract to owner occupants or second home purchasers. And that opens up the gates for all our loan products and best available rates. sunny.hong@bankofamerica.com

Jasweene, did they give you any indication of when they will be ready to close. Or did they say what permit? I just signed the contract yesterday

BrklynJoy -- may i ask what sort of unit you are purchasing?

Did anyone buy their storage units ?

Did anyone purchase parking or negotiate parking with their contract?

@ armstrongr - what bank were you thinking of going with? we are ABSOLUTELY torn about who to get a mortgage from \- BofA is giving us a great rate, compared to the preferred lenders who are giving us rates of 5.375, or 4.5 BUT you have to pay .5% mortgage insurance and an additional 2.25% tacked onto the total for some sort of other insurance, even though we are putting 20% down. but do we really want to risk not getting a mortgage in enough time and then losing our 10% down? At least if a preferred lender doesnt come through in the time alloted in the contingency then we dont lost our money, but it will come at much highter price - at least a full point. This whole process is absolutely frustrating. Even though we are perfect candidates for a mortgage - 20% down, NO debts, enough money in the bank, stabled jobs, etc you name it - we are still worried about this whole preferred lender v non or not yet preferred lender business.

this is a message to everyone worried about the amount of units sold. According to a full page "hooray for us" - style ad in the latest Time Out NY - I forget the date of the issue, but its the one with a really muscle-y guy on the cover, Schermerhorn is over 50% sold. Now, i dont know the legality or ramifications of lying in print, but if they put it in a mag like TONY, dont you think the mag would possibly vet this info before running a FULL PAGE ad?

does anyone have thoughts on this? has anyone else see the print ad?

I agree with frustrating, but, at least all of the rates are historic lows.

combining what streeteasy shows and the number people on this blog that have just signed contracts and now mag ads etc .... I'm confident they are over 50%. .... I'm not getting any parking, cabana, storage. Althoug I'm sure after moving I'll wish I had a storage unit.

i saw the cabanas and was frankly underwhelmed - they are small and have that fake green "grass" wrapped around them. If perhaps the building was an uuber lux building, then it would make sense to have cabanas on the roof. besides - the views are perfect without from the common roof area. maybe if i was spending like $1 mill or more, then the idea of a private space would make sense. but lets be real here, i am hopefully buying a glorified alcove studio and looking to save every penny i have - a $30- 40K cabana is NOT in the budget.

nycgirl2 - I completely understand what you're going through as well. It's pretty confusing and frustrating. Although, I would probably warn you that even if the building is over 50% in contract or sold, this doesn't necessarily mean that they will approve our loans. This is just a general rule, but these banks are very strict now.

It doesn't matter if you have a great credit, you're paying % of downpayment, etc. You can blame all the previous all the investors/developers for creating this mess, but then again, we probably wouldn't have this conversation since the housing prices are at all time low.

All I can say is that I'm HOPING this building has reach the following guideline/requirement % to allow us to apply for the non-preferred lenders.

I'm not concerned with the contingency. If you're going to apply for a loan using a non-preferred lender, then you're probably going to get pre-approved then move onto the next steps. Why would you be concerned about the downpayment? You're using the $$$ for your payment.

I would only be concerned if you're thinking about backing out because of unexpected issues (loss of a job, found a better place and price,etc.)

However, you should also put clause on the contract to put pressure on the building. You can state how you will receive full payment if their building doesn't close at a certain date. Obviously, they would need to approve the date, but aleast you can feel protected with your $$$. You should speak with your lawyer about it.

nycrayz - we are concerned about how long it will take to get a mortgage contingency from BofA. We negotiated for 45 days, but i have heard that it might take that long, and we have already "lost" several days thinking about who to go with. Thats the problem - if we go with them and it takes too long, then we lose the deposit. but if we go with a preferred lender, sure it will get approved, but at a significantly higher percentage. thats what we need to decide.

or you can apply to both and eat the application fee. That's what I'm debating. But you need to be confident that the other rate will be better. You could consider the extra fee insurance

NYC Dept of Finance assigned tax lots yesterday, get ready for closing notices.

based on the amendment a few people have purchased the cabanas and storage units went up in price. I guess they will all be sold or lots of early buyers purchased storage units.

parking was not for sale when we went into contract. did anyone get parking included in the deal or a few years paid?

gate27 - 2bed/2bath comp'd to 1 until sold at 53Boerum, 2 units sold at Toren, and 2 Be@ units in contract.

The parking lot is being run by an outside vendor with no ties to Be@. http://www.ggmcparking.com/locations/details/189_schermerhorn/
I believe the monthly rate they are asking is $240

corcoran say all cash purchases closed yesteday. Can anyone confirm this?

I went into contract about 3-4 weeks ago for a corner one bedroom with a small terrace. Like everyone else, I'm super anxious to get in there. Hope closings go out soon!

I wish the parkinglot was part of the condo. It's really targeted for us....Just another scam..

It makes no sense how it's separately owened under their fuggin building. Who is going to park there? How many parking lots is needed around there? Seriously? Does anyone work there?

I know the one across the street is going to close up, but there's like 3 around the corner...It's never packed.

Isn't it a city law that new condos have to provide parking based on some sort of proportion to the # of units in the building?

NYCRayz, do you know if they going to start building anything on that parking lot across the street?

Probably in a few years...2012 - 2015. I expect that there will be alot changes happening during these years...It might be painful (road closures, constructions, traffic, etc., but it will be all worth it....

Check out this site.

http://www.nyc.gov/html/dcp/html/dwnbklyn2/dwnbklynintro1.shtml

http://www.nyc.gov/html/dcp/pdf/dwnbklyn2/dwnbklyn.pdf

Pretty resourceful for those who will be my neighbor around the hood. =)

I'm excited for the future of this area...

i see the posts on this discussion thread seem to have slowed down a little.... does anyone have any updates? Do we know if the % of apts sold has gone up? plateaued?

Closing letters went out this week..that's all I know...and the building over 50% in contract/sold.

Did anyone actually receive a closing letter? I didn't...

This is all a bunch of crap about closing letters. I have been in contract for 3 weeks and was told that move in would be "Oct 1st".. then the bank, Wells Fargo, told me that they couldn't issue the loan for THIS building because they are missing the proper CO papers! They haven't received clearance for the property to be move-in capable yet to to what most likely is a "fire code violation" For the past week I have been juggled back and forth between the personal broker, the broker for concoran, and the attorney who keep saying that it is coming, it is coming, it is coming...but guess what.. NOTHING! So.. I will give them until Monday to tell me what the truth is, when the closing WILL happen, and if they give me one last ring around and I don't close by that date, THEN I WILL ASK FOR ALL MY MONEY BACK, because I have already been pre-approved for the loan and the bank even said, any other building, it's yours! So on monday, the truth will be told and I will let you ALL know and then I will start name cdropping, because to me, THIS IS NOT A GAME! - James (and if you guys are reading this, which I know you are, get ready because now I am getting involved personally) A business CANNOT be run on lies!!!

Jasweene,

Who told you that you would be able to move in by Oct 1st? I was always under the impression that you wouldn't be able to close until November/December timeframe. Plus, it all depends upon the building will meet pass and meeting the requirements and so forth.

It's a new building so this means that there will be challenges, delays, etc. Also, so what if you're pre-approved, this doesn't necessarily 'mean' anything. You can't proceed any further until the bank 'saids' so.

Your bank will need their 'time' to supply the funds over to you. It's not going to be done overnight. Plus, I think your bank is kinda exaggerating here by saying how any other building, it's yours! It's not THAT easy to simply get a mortgage (loan). Do you read the past posts here?

It sounds like your bank rep is making you look like a fool here.

You had mention about a 'personal' broker as well. Is this person telling you the Oct 1st date? You better get rid of this person too.

This building isn't even suppose to sell at 50% at this rate. Anyhow, let us the 'truth' on Monday. I'm curious too,

I got my closing letter Monday. I was also pre-approved yet it took over a month to get the final commitment letter.

There is a TCO for the property. This can be seen on the nyc dob website. A final CofO is not needed to occupy an apartment or apartment building.

In June we were told told closing would start in early August, in August we were told early September, in September we were told late September. It is more that the signoffs take time and it is very bureaucratic.

I do believe that it is soon as tco is in place and tax lots were assigned last Monday. Now the question is has Cooper Square started their staff operating in the building and signed off on the critical systems to operate the building? Is our management company doing the right thing for the owners that have yet to move in?

nyguy7 - they do comply with the parking requirements by having a parking lot in the building. it is a separate condominium entity. similar to how all of our apartments are separate condominiums. to be able to purchase parking spaces that Sponsor would have to have made each parking spot into a condo unit and then sell them.

easysunday - what is the closing date they gave you ? I am assuming nov 1 if your getting the 30 day notice. Is that correct?

Has anyone ever had any experiences with this management company (cooper square). Any thoughts on them?

We received our closing notice for 11/8. Very excited!

mazal tov brklnyjoy! hopefully we will all be getting ours soon as well

I'm still waiting to hear from the sponsor about my counter offer, so I have quite a few steps to go before I officially own anything.

Has anyone hired engineers to inspect the units? Were there any problems we should be worried about?

I wonder how many first-time buyers are in this building (and the big ones in W'burg). It seems the first-timers get jerked around a lot in the large new developments by developers and brokers. At least, there seems to be a ton of confusion on SE.

Believe the confusion is a natural by product of sponsor sales. It is not unique to large developments either. There is always mounting frustration from delays and uncertainty around clsing. If you read brownstoner, curbed or se there's a decade of angry buyers. Not only closing, also the first months when things in the building don't work.

An article in the times today said 137 our of 246 have gone into contract - that seems high to me. Perhaps that's accepted offer OR contract...

streeteasy shows 137. Seems accurate to me. I was 133 and my apt showed up on SE a few days after I went into contract.

bkbnd -- could you link to the article?

Oh sure - http://www.nytimes.com/2010/10/05/nyregion/05appraisal.html

Just going from the conversations I've had with people in the building I would guess that means contracts out, not contracts signed.

bkbnd: what makes you say it includes accepted offers? I wasn't added to the count until after I signed the contract AND the sponsor signed. As far as I have heard there are many more accepted offers. The sponsors attorney has a voicemail setup routing all 189 Schermerhorn callers to a dedicated rep to handle the volume because it is massive. Units have been goning into contract at a rate of 1.13 per day. The sept rate was the exact same as the summer rate. If anyoneone knows the number of accepted offers not yet in contract, I would be interested to know.

bm9895: Oh totally anecdotal, just that when we were talking with the sales agent a month ago he said it was around 40, 42% and he described it as contract out or better. But if it's signed, that's even better.

Where did the 1.13 come from?

Summer 102/90 = 1.13 and 136 - 102 = 34 then Sept 34/30 = 1.13. These are the summer sales numbers reported by streeteasy and published in the NY Times, ads, communicated by corcoran. I completely agree that one needs to take everything from sponsor, agents and brokers with a grain of salt, but is this not enough evidence? I am convinced with the accuracy of streeteasy because my contract was reported correctly, after signiture, as it is supposed to be.

am I the only one who believes the numbers reported?

i believe that the numbers are correct. there has been a steady flow and the building is priced correctly for today's market.

i wonder how the storage units are selling and the rooftop spaces? Have any of the newer buyers purchased a storage unit ($8k list price) or rooftop cabana?

We r closing on the 19th! Think the doubling of storage unit pricing is absurd for the size you're getting tho

CBVB, may I ask which lender you've decided to go with?

NJ Lenders

After looking into armstrongr's post, I agree that an affiliate of Wells Fargo is providing a very competitive FHA package (4.25% 30 year fixed, 90 day lock with zero points and competitive fees for be@). I'm posting the contact information with permission: jose.m.becerra@decapitalmortgage.com

Damn, and I thought I had a really great rate when I purchased earlier this year.

We signed the contract in Friday and made a visit to the building over the weekend.

Heard from Corcoran the latest numbers: with the offers and purchase plans out, if all come back in contract they will be at 75%. Move ins began on Friday with just a handful. This is great news for those already in contract as prices could be adjusted up given the hot sales numbers.

I'm getting a 4.875% interest rate with a preferred lender -- I signed a contract back in June and must go with a preferred lender. Is anyone else with a preferred lender? What interest rate are you getting? Thanks!

Is anyone going to this party on Thursday? I'm interested in meeting some of my future neighbors.

guynate, which lender? i was getting a 5.25 rate in July.

What party? I thought that was a few weeks ago.
We signed our contract Thursday, hope to close early December.

I received an email from my Corcoran agent last week inviting me to a party October 14th to celebrate that the building is 60% sold.

I went with NJ Lenders -- it was a 5.25 but dropped down to 4.875 once the building went over 51%. I hope to close in the next two weeks -- but I'm waiting on the building to get their Fanny Mae waiver. Anyone else waiting on the same? Anyone else get a commitment letter below 4.875? Just wondering.

guynate, i think your lender needs to request the waiver, not the building....

What's the outlook of $/sq ft trend for dobro? 96 Rockwell just announced some 20% price cuts...
http://streeteasy.com/nyc/building/rockwell-place

We're getting 4.3something% from Amalgamated, but we went with a 5 year ARM. Between the extra for a preferred lender and built in PMI for putting 15% down, we'll be happy to refinance in 3 years.

Anyone here moving in this month?

http://www.brooklyneagle.com/categories/category.php?category_id=5&id=38785

Anyone else just have their closing CANCELLED??

anyone know if any buildings are planned to go up around be@ ?

Cbvb could you please elaborate? Why was your closing cancelled?

The building apparently isn't FHA approved for the new lower mortgage rates, so we're getting screwed with our move-in. No new closing date has been set, and could be in November.

Anyone know which north facing floors/units get unobstructed views now (and how bad will they be impacted by mega buildings going up)?

@meh - I know we researched the zoning for the parking lot across the street on Schermerhorn. Right now it's zoned to have an 8 story building. It's supposed to be a height gradation from downtown brooklyn to the smith/atlantic area.

Cbvb so you actually didn't have a cancelled contract or closing, but rather a postponed closing date?

Thanks bkbnd. Considering the zoning on the Schermerhorn st side and Landmarked Macy's on Livingston, and the MTA having no money to build up their building to the west, sounds good to me! I looked at this building last week, there are still some nice apts available. Anyone have negatives about this place? Besides no W/D in the apts, and the common laundry room looking a little smallish for 260 units, I didn't see any REAL negatives towards this place. no? Seems to be selling fast, too.

My biggest concerns about the place have to do with ventilation. The windows don't open very far and there's just a tiny vent for suction in the bathroom. Took the plunge anyway.

I would have concerns such as laundry and window breeze if the price was 33% higher. But as it is, get 'em while their hot. I signed the contract a month after I saw them.

Which floor gets a view over Macy's? Asking to get a better feel for price comparison. Thanks.

I'm pretty sure the 9th floor is the first which gets a view over Macy's.

Thx bkgirl!

9 is too low to clear Macy's. North side, if I remember correctly, you needed to be in upper teens to clear Macy's. Others, please feel free to chime in.

Yep, that's what I thought too. If I remember correctly, you need to be above 15 to clear MACY's view.

bkbnd - ventilation should not be an issue and is standard for a new condo. unless you swap out the range for a viking 6 burner and cook up a storm. the windows open that much due to code. you can take the limit stops off after you move in.

Macy's building (landmarked A&S) is taller on the Hoyt Street side of the building. I remembered having to be up around the 23rd floor for the larger apartments. I would totally check out each floor to make sure you get the view you want.

FHA .... what is the deal? Can you give some more details?

cbvb - not sure what you mean by the building not being FHA approved for the lower rate mortgages. The building is either FHA approved or not. There isnt an FHA approval that has higher or lower rates. And as far as I know, the building IS FHA approved. sunny.hong@bankofamerica.com

what kinds of rates are being offered FHA? I was offered 4.375 through one of the preferred lenders.

Shong - they say they are FHA approved, but do not have the paperwork yet to back it up, so to my bank, it's like they dint have approval.

When a condo is FHA approved, it gets listed on the HUD website.

freewilly I looked at the 1BR F, G, and H lines and to really clear Macys for a solid view of Manhattan you need to be on the 23rd floor. Your view could be impacted in the future by a tower next door to (and even taller than) the Brooklyner... but this is years down the road:
http://ny.curbed.com/archives/2010/09/14/brooklyns_next_tallest_tower_back_on_track.php

Well according to my bank, it doesn't seem to matter if its listed or not....if they dont have the FHA paperwork in their hand, they're not closing on the apartment.

any comments on the E line?

cbvb, you might want to question your broker. If they haven't been able to get the forms that most likely their fault. I'm sure they'll blame the buildingl but you can't really trust them. You can verify the fha approval online.

Bm9895 - we aren't the only ones that have had their closings postponed, so im not sure what the case is

I closed with an FHA loan on 10/13. No problems.

Thx re_guru! I actually like the building: basic design, access to trains, developing location and reasonable $/sq ft. But one thing concerns me - the feeling that people buy into these types of glass buildings because of the view (so no surprise that the north facing high floor lines are the first to go). So my concern is whether they will have trouble selling the rest, chop further and bring down comps. Comments?