Buying a Co-Op

Make sure the coop is at least 70% owner occupied... Chase won't lend on buildings under that amount. Plenty of other banks will, though.

wanna buy a condo instead?

congratulations!

1) I'm going to get flamed for this, but the real estate attys I like are charging around $2500 - $3000 a closing. For the most part, attys who do closings for $1500 I don't think do a great job.

2) Not as long as you shop around very quickly. FICO 8, the newest credit scoring system, makes some allowance for pulls during a period of shopping for a mortgage (or a car loan) as long as it's not extended. Do NOT make any new major purchases during this time, even if you pay them off immediately. That will hurt your score.

3) Pretty standard. Assumption is 7-10 days to get a signed contract with riders settled to everyone's satisfaction, 14 days to get the board package to the managing agent, 30 days to get board consideration, 14 days to get an interview, a couple of weeks to close. The process can go somewhat faster if you time the board package correctly.

ali r.
DG Neary Realty

It can go quicker than 90 days if you are not getting financing. However since it appears you will be acquiring financing it could take 90 days. The process will go as follows: at least a week or two to get contract fully executed, lender needs to appraise the property, you will need to prepare the board application (usually takes several days), managing agent reviews the application and sends to board members, members then meet (once a month typically so this holds up the process)and review it, and if all looks good you are granted a date for a board interview. If all goes well and you are approved, the bank, attorneys, yourselves and managing agent will need to set a closing date. All of this typically takes 60 to 90 days.

front_porch,

how did you get the 14 days for board package? that can only happen in a cash deal. most coops require the UCC1 and Aztec forms. when i did that in 2002 and 2006, it took 20+ days. i'd expect to take longer now.

how did you get the 30 days for board consideration and 14 days for interview? you said yourself that after submitting a board package, it typically takes 60-90 days to close. did you forget that? the management gives itself a right to review the board package for 2-3 weeks. after that, it submits the board package to the board and depending on your timing, it can take 3-6 weeks to meet the board. this is a typical scenario. i know that some boards will schedule a special meeting, but they are very rare.

a couple of weeks to close???? again, if it's a cash deal, hell ye. realistically, based on my previous experience (citi and chase), it took 3 or so weeks to close. add to that the additional underwriting that takes place, add another 2 weeks to that. you need to get the management company, 2 attorneys and 2 banks in a room to do the deal. after i got the go ahead from my banks, it took at least a week to find a mutually satisfactory time to close.

i think it's time for you to check your notes, as your memory is going.

ab_ since the owners know their target building, they can be working with their lender on some of the paperwork even as they are waiting for a copy of the signed contract to come in. It's entirely possible in 2010.

I appreciate the suggestion that my memory is going (I did just have a birthday) but I've also done recent closings so I stand by the idea that 90 days is standard, though I admit that it can take longer.

ali r.

no way you get done in less than 90...I just bought a coop with a farely loose board and it still took almost 4 full months

We closed on a co-op almost exactly 60 days from contract signing in May of this year. And that was with a pesky leak issue, having to push the board interview back two weeks because of our travel schedule, and a Fannie Mae waiver for the mortgage.

We were board approved and clear to close 21 days from contract but couldn't do so because the leak issue had not been resolved. We had the board package ready to be submitted before the contract was even signed, and we had a very responsive board who wanted our seller gone. Our mortgage broker was great in getting the Fannie Mae waiver promptly.

If you have the right seller, the right board, and the right people helping you, it can be done in less than 90 -- even with complications.

Thanks everyone. I guess my related question, as to timing, was: even if we get the right seller, right board, etc. etc., is there some reason CHASE would hold thing up till the 90-day mark? Or are they just saying that to be safe?

Also, any referrals for attorneys (either specific ones, or where to find a good co-op attorney) would be very helpful.

Thanks.

How about this guy:

Ronald H. Gitter, Esq.

110 East 59th Street, 23rd Fl., New York, NY 10022 Tel: 212.826.2405

He has a real estate site, http://www.coopandcondo.com

Don't know his price or how good/bad he is though.

lol that's quite a recommendation.

nyperson, see http://streeteasy.com/nyc/talk/discussion/4068-can-anyone-recommend-a-good-real-estate-lawyer

The hold up probably won't be Chase but rather with the board. With my three transactions including selling and buying the board didn't want the package until we had a firm commitment and not just pre approval. So we had to wait and by then all the financials were outdated and we had to come up with more current data. It still took 90 days because boards sometimes only meet once a month and if you miss it you have to wait. With all the holidays coming up I would imagine it will take you a full 90 days to close.

at this point, loans are basically underwritten twice: once through a computer screening and once by a person. So if Chase says 90 days, they're probably calculating based on what their current loan volume looks like, and what they expect the bottleneck to be to get the loan through the human underwriter.

ali r.
DG Neary Realty

Try DIANE UNGAR, Esq if you're looking for an excellent attorney to get you to your closing and through your closing. My wife and I just successfully sold one coop apartment and bought another and she went out of her way for us in regard to each one. She's been doing this for over 25 years and knows her stuff, well worth her rates which are pretty much the going rate, based upon whether you have financing or not, and such. She'll guide you completely through the process.

DIANE E. UNGAR
44 Wall St, 10th Fl
NY NY 10005
Tel: 917.576.7880
Fax: 646.786.4411
deu624@aol.com

She also has an office in Park Slope, 718.623.0777

The truth is - every transaction is different. There are a lot of factors from when the board meets to how extensive the board package is to how fast Chase is in finalizing paperwork, to how motivated the seller is to have everything on their side completed as well. For example - you might be ready with your board package - but for some reason - the board doesn't meet that month. Maybe it's because there's a holiday - or maybe because many are on vacation. Whatever the reason - it happens. Maybe the seller can't find the stock certificate and has to refile. Maybe during the process you make some charge on your credit card or something which flags your account with Chase and you have to submit a letter of explanation. Not trying to be debbie downer - but in reality - things can go easily or they can not. You really never know. You could close in 60 days. Or it could take several months.