There is a one major reason New York City has fewer homes in foreclosure than most cities in the nation: co-op boards. The level of scrutiny to which potential buyers are subjected when buying a co-op is far more intense than anything a bank could conjure. But how can buyers navigate the increasingly intrusive application process to buy a co-op apartment? The New York Times suggests one simple notion: be very honest.
With some co-ops paying over $3,000 per applicant to screen a prospective buyer, they are likely to find anything an applicant hopes to hide, the Times said. So if there are skeletons in any closets — lawsuits, bankruptcies, criminal convictions — best to state that on the application.
“Once you hide it,” Michael Wolfe, president of property manager Midboro Management, told the Times, “the board thinks it’s worse than it is.”
Lastly, if the co-op is small, a buyer should probably be willing to serve on the co-op board, the Times said. [NYT] –Guelda Voien