Can HDFC's finance me directly?

> Long story short, I've since lost my job and have tried to refi with the building/board and they've denied twice and tried to evict me.

WOW HDFC seem more risky than the typical mkt rate purchase. everything seems arbitrary and depends on each building. NO THANK YOU!

HDFCs are snakepits.

To answer your question, I'm nearly certain that what they did (short of the broker lying to you) is legal.

[I'm assuming you're saying the building holds a note, and you make payments directly to the coop corporation ... rather than that they required you to borrow from one particular third-party hard-money lender or the like. Apologies if I misunderstood.]

Whether it was smart of them is another story altogether. For an ordinary coop, definitely not. For a typical HDFC, with the poverty mentality that's rooted entirely in the present with no thought to the future, it might actually be somewhat sensible. Think lottery winners who blow their wads in no time at all.

When these building converted to coop, some tenants chose not to buy their apartments for hundreds of dollars per ROOM, preferring the devil they knew (rent control/stabilization). So ownership conveyed to the new coop corporation. When those apartments turn over, the HDFC typically rents it out at market rate (for positive cash flow to keep maintenance down) or sells it (for a pot of gold to beef up capital and/or operating reserves).

Because of the pervasive renter mentality and aforementioned lack of foresight, they tend to try to keep the maintenance "affordable" at all cost. But a pot of gold MUST be spent down immediately, even if it's honest spending. Just kidding -- it never is!!!

So what your building appeared to do -- sell off the apartment while (maybe?) legally binding it as collateral, and ensuring ten years of cash flow on top of your maintenance -- might actually be smart, given the givens.

But I digress wildly ... why do you need to finance two years into a ten-year mortgage? You do know the various bank fees will more than kill any advantage in rates that a bank today might offer you, right? Assuming the loan rate from the building was anything close to what rates were two years ago (not much different from today).

"It ain't no joke if you don't pay that note."

Thanks, alanhart. I'd seen UCC1s filed by HDFCs before, but didn't know what was behind it.

Here's another HDFC looking for its money: https://iapps.courts.state.ny.us/fbem/DocumentDisplayServlet?documentId=f5MuVzLBVpZfqZa2YnwnTw==&system=prod

OMG how did you find this? cannot imagine why a smart HDFC would run the credit risk of becoming a lender? WTF?? is it because it's finances are so bad that FNM doesn't allow conforming loans on the building?

Don't know. I just searched for cases where plaintiff's name included HDFC. That one seems to be over with, as SE shows the HDFC getting the shares back.

> Long story short, I've since lost my job and have tried to refi with the building/board and they've denied twice and tried to evict me.

can you try to sell the place to cover what you owe? or is it too late due to late common costs?

> That one seems to be over with, as SE shows the HDFC getting the shares back.

so it's going to be put up for sale soon. the weird thing is that that case says that the defendant purchased the place around 2009/02 with a $31k mtg, but there's no record at all of that transaction nor in ACRIS nor in SE. what's that about?

Or put up for rent. Possibly the smarter move if building's fondness can handle it and gentrification is gaining traction. Is too lazy to click on the link. What neighborhood is this in?

she's unemployed, chances are she cannot even handle the typical vacancy periods that come with being a landlord.

I mean that the coop has the option of putting the apartment up for rent, instead of selling it, if they recover ownership of it. And that might be the smart thing to do from the coop's perspective. The Golden Goose, to be slayed in a more gentrified climate. Or something.

From the OP's perspective, the best thing is to take in a roommate and pay arrears up lickity-split, so as to continue paying on the 8-years left mortgage until he/she regains employment and can get a bank mortgage.

To be clear, my first paragraph refers to the place NWT linked about; the second paragraph, of course, refers to the hdfchelp's situation, as I understand it to be.

got it, agree on the coop part, if it's well financed and not starved for cash they should renovate and rent.

though, aren't the HDFCs required to have those units filed with people using them as 1st residencies? can the coop rent it out indefinitely legally?

That case was 320 W 111 St. The shareholder's answer was that the co-op had refused to accept payment. Then nothing until this June, when the co-op dropped the case, so no telling what happened.

The 2009 sale should've been recorded and transfer taxes paid, but nothing shows up. It was just an example of an HDFC co-op acting as lender, anyway.

I still don't get what happened with the OP, and at the closing, with a bank showing up with the money and getting told "Never mind, the money was borrowed elsewhere." Wouldn't that cost money?