The Real Deal New York

Super-liens pose perils for condo, co-op buyers

May result in higher rates, tougher standards

June 30, 2015 03:25PM
By Kenneth Harney

From the June issue: Could some of the nearly 67 million Americans who live in communities governed by homeowner associations — condominiums, cooperatives and others — face much tougher underwriting and higher interest rates when they apply for a mortgage?

That is the looming threat from the mortgage industry in areas where state laws give community associations “super-priority” liens on dwellings whose owners have not paid their assessments. [more]