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Coop board rejects buyer, anyone with advice ?
My stupid coop board rejected our cash buyer's "application". After 3 months of waiting for them to have a meeting, this past Tuesday they decided to reject him. Anyone with advice? Anything we can do?? I'm so upset and just want to sell our place already!
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Posted 2/24/13 4:52 PM  |
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Deeluvsvinny
DONE
Member since 10/08 4952 total posts
Name:
Whatever
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Re: Coop board rejects buyer, anyone with advice ?
there really isn't anything you can do, unfortunately. You'll have to refund the buyer's deposit and put the apartment up for sale again.
it's awful. This is the one main thing I hate about co-op boards..they make a decision and never have to give any reasoning behind it. You probably will not find out why they rejected the buyer.
Sorry!
Good Luck!
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| Posted 2/24/13 5:40 PM |
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Re: Coop board rejects buyer, anyone with advice ?
Posted by Deeluvsvinny
there really isn't anything you can do, unfortunately. You'll have to refund the buyer's deposit and put the apartment up for sale again.
it's awful. This is the one main thing I hate about co-op boards..they make a decision and never have to give any reasoning behind it. You probably will not find out why they rejected the buyer.
Sorry!
Good Luck!
Yup very annoying. I will never tell anyone to buy a coop and strongly advise my kids never to buy one in the future! I say this now obviously BC this is so annoying and weve taken a hit tool... Thanks for responding 
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| Posted 2/24/13 6:30 PM |
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JsWife
His laugh, Her smile
Member since 12/06 2902 total posts
Name:
Patricia
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Re: Coop board rejects buyer, anyone with advice ?
Did they give a reason why they rejected buyer? Is there an appeal you could make?
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| Posted 2/25/13 8:23 AM |
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SusiBee
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Member since 3/09 8268 total posts
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S
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Re: Coop board rejects buyer, anyone with advice ?
Finances are the only real reason a board can reject a buyer, or if he/she would do something that would violate the occupancy lease, for example, run a business out of their home that would produce traffic.
The board is also not obligated to tell you, the seller, the reason why.
Even though your buyer was paying cash, he may not have enough income or residual savings to carry the maintenance.
Use this The Cooperator online publication to research co-op boards and the approval process.
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| Posted 2/25/13 8:33 AM |
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Pray4Baby2010
<3 Cutest Giants Fan
Member since 10/09 5796 total posts
Name:
MB
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Re: Coop board rejects buyer, anyone with advice ?
I'd call up and ask- that's insane that they would reject a cash buyer...
In our complex if you get teh interview, its a formality and no one gets rejected. But if they rejected a buyer, I would sure as hell expect a reason!
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| Posted 2/25/13 9:09 AM |
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Re: Coop board rejects buyer, anyone with advice ?
Posted by Pray4Baby2010
I'd call up and ask- that's insane that they would reject a cash buyer...
In our complex if you get teh interview, its a formality and no one gets rejected. But if they rejected a buyer, I would sure as hell expect a reason!
You can ask, but as others have said, legally, the co-op board does not have to provide a reason for rejecting an applicant. It can be very arbitrary. They can really reject for any reason, other than one with a discriminatory purpose. But of course, if the reason for rejection doesn't need to be disclosed, how could discrimination ever be proven?
But I agree with the previous poster who said that a buyer isn't necessarily qualified because he or she is paying all cash. There could also be concern about the applicant's ability to afford the monthly maintenance. And even if the buyer has a substantial income, it might also be offset by substantial debt... Many co-ops have stricter debt-to-income ratios than mortgage lenders! And the co-ops I deal with not only look into finances but run other background checks (for example, to see if the applicant is a sex offender).
Can you, or your agent, speak to the co-op management to find out if there are any hard and fast requirements that you can use to prescreen buyers before going into contract with someone only to have them later rejected? For example, I know some co-ops have a minimum credit score requirement, although they will usually run credit prior to even giving out the co-op application. But it would help to know these things upfront, so you can qualify a buyer (even a cash buyer) ahead of time. You really want to be familiar with all of your co-ops rules.
Sorry it didn't work out for you! I sell a lot of co-ops and it can be tough. But I really wouldn't get that aggressive with the board -- you can ask nicely what happened, but they don't need to tell you. And let's face it - you are going to have to go through them when you find your next buyer. Don't burn a bridge! Co-op boards (and management companies) can be very frustrating to deal with but they have all the power here, so tread lightly!
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| Posted 2/25/13 11:04 AM |
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Re: Coop board rejects buyer, anyone with advice ?
Here is his info: he owns a building in Flushing, his income is from the tenants. He must not show a lot of income on his taxes.....so to prove he can pay the maintenance, he deposited 100,000 into the account. (Thats not including his cash to us to buy the coop). Another thing I'm upset about is he has a son who would co-sign, but they wont allow him to bc he cannot attend the interview b/c he's working/business in China. It's 2013, can't we Skype!?!
I know, we definitely don't want to stir the pot too much, as I read above, we obviously need to deal with our board again.  It's just so frustrating!
Message edited 2/25/2013 1:16:13 PM.
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| Posted 2/25/13 12:57 PM |
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JennB
My princess <3
Member since 5/09 2473 total posts
Name:
Jenn
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Re: Coop board rejects buyer, anyone with advice ?
Posted by WestEndLove
Posted by Deeluvsvinny
there really isn't anything you can do, unfortunately. You'll have to refund the buyer's deposit and put the apartment up for sale again.
it's awful. This is the one main thing I hate about co-op boards..they make a decision and never have to give any reasoning behind it. You probably will not find out why they rejected the buyer.
Sorry!
Good Luck!
Yup very annoying. I will never tell anyone to buy a coop and strongly advise my kids never to buy one in the future! I say this now obviously BC this is so annoying and weve taken a hit tool... Thanks for responding
ITA!!! Biggest mistake of my life. We had a potential all cash buyer but her credit scores were below their minimum requirement and my agent advised against accepting the offer because it was a sure reason for rejection. Also at closing we were pounded with fees on top of the flip tax I was totally unaware even existed! After my experience, I feel like co-ops are a scam
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| Posted 2/25/13 4:05 PM |
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Re: Coop board rejects buyer, anyone with advice ?
Posted by WestEndLove
Here is his info: he owns a building in Flushing, his income is from the tenants. He must not show a lot of income on his taxes.....so to prove he can pay the maintenance, he deposited 100,000 into the account. (Thats not including his cash to us to buy the coop). Another thing I'm upset about is he has a son who would co-sign, but they wont allow him to bc he cannot attend the interview b/c he's working/business in China. It's 2013, can't we Skype!?!
I know, we definitely don't want to stir the pot too much, as I read above, we obviously need to deal with our board again. It's just so frustrating!
If what you are saying is true, then this is not a typical buyer. It sounds like he is an investor, and investor buyers tend to go through a more rigorous screening process and receive more scrutiny when buying additional properties. Moreover, if his finances were really airtight, he would not need a co-signer. Goodness knows what other issues he had, many co-op boards are leary of buyers who need to rely on revolving income (e.g tenant income) to pay their expenses, I can totally understand why the Board rejected him.
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| Posted 2/25/13 5:12 PM |
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MrsDrMatt
Live and RUN like a Ninja!
Member since 5/06 3104 total posts
Name:
MrsDrMatt
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Re: Coop board rejects buyer, anyone with advice ?
Posted by EclecticEsq10810
Posted by WestEndLove
Here is his info: he owns a building in Flushing, his income is from the tenants. He must not show a lot of income on his taxes.....so to prove he can pay the maintenance, he deposited 100,000 into the account. (Thats not including his cash to us to buy the coop). Another thing I'm upset about is he has a son who would co-sign, but they wont allow him to bc he cannot attend the interview b/c he's working/business in China. It's 2013, can't we Skype!?!
I know, we definitely don't want to stir the pot too much, as I read above, we obviously need to deal with our board again. It's just so frustrating!
If what you are saying is true, then this is not a typical buyer. It sounds like he is an investor, and investor buyers tend to go through a more rigorous screening process and receive more scrutiny when buying additional properties. Moreover, if his finances were really airtight, he would not need a co-signer. Goodness knows what other issues he had, many co-op boards are leary of buyers who need to rely on revolving income (e.g tenant income) to pay their expenses, I can totally understand why the Board rejected him.
I agree with you. He sounds financially fishy. I wish you luck in selling.
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| Posted 2/26/13 9:49 AM |
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Re: Coop board rejects buyer, anyone with advice ?
It sucks and I wish you luck as well.
But I agree with the other ladies, given what you added about him.
Something smells funny.
I also deal with housing issues at work and for many RENTALS they will no longer approve the person moving in without a face to face interview.
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| Posted 2/26/13 10:22 AM |
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SusiBee
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Member since 3/09 8268 total posts
Name:
S
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Re: Coop board rejects buyer, anyone with advice ?
Posted by WestEndLove
Here is his info: he owns a building in Flushing, his income is from the tenants. He must not show a lot of income on his taxes.....so to prove he can pay the maintenance, he deposited 100,000 into the account. (Thats not including his cash to us to buy the coop). Another thing I'm upset about is he has a son who would co-sign, but they wont allow him to bc he cannot attend the interview b/c he's working/business in China. It's 2013, can't we Skype!?!
I know, we definitely don't want to stir the pot too much, as I read above, we obviously need to deal with our board again. It's just so frustrating!
I'm on my co-op board and chairperson of the sales/interview committee.
This info would send me warning signs.
- I would be asking where did this 100k come from and also where the cash for the purchase came from. These are legitimate financial questions and I can ask that.
Just because he owns a building doesn't meant that he owns it free and clear - it may be heavily mortgaged or liened so that the tenant's income barely covers the expenses. Any mortgage info would appear on his credit check.
- Why would he need a co-signer if he is paying cash ? That's got me very puzzled. Co-signers are only for mortgages. If the son is going to live in the apartment, be noted on the stockholder's certificate, and his income to be considered for the purchase, then yes, his financial information must be supplied to the board and he must be interviewed as well as the father.
We want to meet everyone ultimately residing in the apartment in person (other than minor children). We also ask for photo id for the application. Skype can't prove who the son is.
It's frustrating and sounds like you have one of those kinds of boards that make life difficult. But they've got to cover themselves if this buyer defaults on maintenance payments. It's a long, expensive process to recoup arrears, and most co-ops run a very tight financial ship. We need monthly income from maintenance to pay the co-op bills.
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| Posted 2/26/13 12:22 PM |
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