Need Your Help---Sister's Co-Op-- Potential Buyers and Insurance Question

Their is a couple DYING to buy my sisters co-op, but they cant find a mortgage broker to give them a loan on a co-op. Now from what I understand they found one, but bc they only have 5-8% to put down, they cant find an insurance company to insure them bc in the last 6 months or so, Insurance companies have apaprently started requiring 10% down on a co-op mortgage to give the buyers homeowners insurance. So the catch is, they can financially get a mortgage, but then cant bc you cant get a mortgage without homeowners insurance.



CAN ANYONE HELP MY SISTERS POTENTIAL BUYERS???

Re: Need Your Help---Sister's Co-Op-- Potential Buyers and Insurance Question

I think they may be SOOL. It seems they've really cracked down on coops--many mortgage cos. (and coop boards) are requiring a full 20% down.

Re: Need Your Help---Sister's Co-Op-- Potential Buyers and Insurance Question

When we bought our co-op we did not need homeowners insurance. The co-op itself had insurance. We just got supplemental insurance for our personal belongings. I even remember during the board interview they said to make sure NOT to get taken advantage of by insurance...that we only needed to worry about our personal things (they said turn the place upside down and whatever would fall we needed to worry about). Is your sis sure she needs the insurance? I would check with the board! GL

Re: Need Your Help---Sister's Co-Op-- Potential Buyers and Insurance Question

Re: Need Your Help---Sister's Co-Op-- Potential Buyers and Insurance Question

Not a coop, but we have a condo and the only insurance we have is for our belongings. It's akin to renters insurance and FAR easier to get than homeowner's insurance. I would imagine a coop would be the same -- the coop association has insurance for the entire property and individuals only need to insure their belongings.

Are you sure the couple is having trouble getting homeowners' insurance and not PMI?

Message edited 2/11/2009 10:41:29 AM.

Re: Need Your Help---Sister's Co-Op-- Potential Buyers and Insurance Question

You don't need a home owners insurance on a co-op...at least in most buildings you don't. I know for a fact that in my mom's and my grandmother's buildings you do not need it.

Message edited 2/11/2009 10:41:35 AM.

Re: Need Your Help---Sister's Co-Op-- Potential Buyers and Insurance Question

hmmmmm.....

my sister wrote:

yes unfortunately you do need homeowners insurance, but only need to insure from the sheetrock in. The outside of the builing and the structure are insured by Fairfield. Its not homeowners insurance like you have on your house. In fact, I think all state specifically calls it -co-op insurance.

Re: Need Your Help---Sister's Co-Op-- Potential Buyers and Insurance Question

Re: Need Your Help---Sister's Co-Op-- Potential Buyers and Insurance Question

Re: Need Your Help---Sister's Co-Op-- Potential Buyers and Insurance Question

Re: Need Your Help---Sister's Co-Op-- Potential Buyers and Insurance Question

Re: Need Your Help---Sister's Co-Op-- Potential Buyers and Insurance Question

Re: Need Your Help---Sister's Co-Op-- Potential Buyers and Insurance Question

Re: Need Your Help---Sister's Co-Op-- Potential Buyers and Insurance Question

Message edited 2/11/2009 11:24:44 AM.

Re: Need Your Help---Sister's Co-Op-- Potential Buyers and Insurance Question

Re: Need Your Help---Sister's Co-Op-- Potential Buyers and Insurance Question

THANK YOU LADIES!!!

Re: Need Your Help---Sister's Co-Op-- Potential Buyers and Insurance Question

Re: Need Your Help---Sister's Co-Op-- Potential Buyers and Insurance Question

Re: Need Your Help---Sister's Co-Op-- Potential Buyers and Insurance Question

Posted by DPerotti

Posted by belladi

Posted by DPerotti

Posted by belladi



Tell your sister not to be desperate, she should still be showing her place...

oh she is but she knows this couple really wants it.

I know but, she shouldnt waste time on one couple.. She should keep them in the loop but should still be actively showing the coop...

Especially now with banks tightening up and then the board....

She isn't wasting her time She still IS showing the house.....

Re: Need Your Help---Sister's Co-Op-- Potential Buyers and Insurance Question

Posted by ave1024

Posted by belladi

Maybe mine requirements were different but mine is actual coop insurance.. they told me if the pipes are in the inside of my walls then its my problem like bathroom plumbing

It's two different scenarios.

For basic maintenance, most co-ops have clauses in the proprietary lease that say if there is a problem with a pipe that's dedicated to your apartment, you are responsible for it whether or not it's "behind the wall". I think some people don't realize this.

As far as insurance goes, I believe that in the case of major fire where there is a total loss, the co-op would rebuild up to the sheetrock, including all pipes in the wall, even if they were dedicated to your apartment.

It's not like the co-op is only going to install plumbing for people who have insurance.

After a total loss, the homeowner is usually responsible for cabinets, fixtures, sinks, appliances, maybe even the bathtub, stuff like that.

Re: Need Your Help---Sister's Co-Op-- Potential Buyers and Insurance Question

She will need a coop policy which insures the walls in. there is no reason why she would be denied insurance on a coop

Re: Need Your Help---Sister's Co-Op-- Potential Buyers and Insurance Question

I work for an insurance company in NJ, what she needs is a condo/ co op policy, it covers alittle more then a renters policy but less then a homeowners policy.


I have NEVER heard of that with the the downpayment. We dont have anything to do with what you put down or owe on the mortgage. The onyl time we really come into play is when the house is worth less then what you mortgage, then the copmany wants the coverage to match what you owe, which we do all the time. So there usually isnt a problem whats so ever.


Any questions let me know

Re: Need Your Help---Sister's Co-Op-- Potential Buyers and Insurance Question

5-8% is really low . Is your sister sure the board will approve these people? My co-op required 20% & most others I looked at required 20-25%.

It also seems strange that the bank will approve them for that. Are you sure they aren't talking about needing mortgage insurance (PMI)? usually the bank handles that, but you have to pay for it if you are putting less than 10% down.

That is different than co-op insurance, which covers belongings & liabilty. ( To simply.) I don't think Allstate needed to know what our down payment was when we got co-op insurance.

You could have been alreading living in a home, and then get co-op insurance, so why would they need to know about your downpayment?

Re: Need Your Help---Sister's Co-Op-- Potential Buyers and Insurance Question

I am wondering the same thing as many above posters...most co-ops must see 20% down and a nice chunk of $$ in your bank including every bank statement you have for the last _ yrs. I have a co-op and we bought it without the insurance. We called around for rates and information but didn't need to pay for it until we were approved and got the ball rolling.

Co-ops are so strict nowadays.
They want to see what you have inside and out.