HDFC Bad Financials?

I fell in love with an amazing HDFC co-op unit in Midtown and have a verbally accepted offer. The only thing that was holding up the contract was that the seller wasn't sure if a bank would underwrite a loan on building because apparently no one in the building has had a mortgage. I submitted the co-op financials to Chase and they declined the loan because in the last 2 years, the co-op has had 2... [more]

I fell in love with an amazing HDFC co-op unit in Midtown and have a verbally accepted offer. The only thing that was holding up the contract was that the seller wasn't sure if a bank would underwrite a loan on building because apparently no one in the building has had a mortgage. I submitted the co-op financials to Chase and they declined the loan because in the last 2 years, the co-op has had 2 large operating losses. I asked for 2 more prior years from the seller and those years were also large losses. There is still a healthy reserve on the balance sheet, but I'm beginning to question whether it's a good idea to proceed given the co-op's cash flows. This was the last year of the 30-year HDFC regulatory agreement, so possibly the owners that are ready to sell were trying to use up that big reserve payload to maximize their resell value? This is my first home purchase so maybe I'm just being way too paranoid? Should I just sit back and let my attorney handle this part? Also, will the attorney just point out the red flags? Or will they actually investigate and try to get answer/explanations? [less]