The Real Deal New York

A comeback for “unrecognized” loans?

Negative pledge financing, popular during the boom, is now creeping back into the high-end residential market

June 18, 2012 10:30AM
By Katherine Clarke

Kent Swig, rumored to use negative pledge loans

From the June issue: Record-low interest rates have caused mortgage application volume to skyrocket across the U.S. recently. But in the drawing rooms of white-glove Park Avenue co-ops, that means very little.

The city’s priciest co-ops have long restricted the use of mortgages to purchase apartments in their buildings, requiring buyers to plunk down a high percentage, if not all, of the purchase price in cash. [more]

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