Home Buying in New York>Question Details

Cah Worx, Home Buyer in New York, NY

I've been preapproved for a mortgage & have saved enough to put down $360,000. I really love the morningside hts section of uws & have

Asked by Cah Worx, New York, NY Sun Feb 3, 2013

been in the same rental apartment in this area for the past 7 years. Now that I'm finally ready to buy, I'm being told by several acquaintances & neighbors that most of the coop boards in this area will deny me based solely on the fact that I had a chapter7 bankruptcy 14 years ago. I can't belive this would be true! I've recovered from that tumultuous financial period in my life and have brought my fico score back up to 778. I monitor my credit all the time & the bankruptcy is not even on there anymore but they say that a coop board can still get acess to that information somehow. I have a steady well paying job & no debt at all. I havn't started working with an agent yet to look at apartments because I wanted to make sure of what I qualified for but now that I have the preapproval i'm feeling discouraged because I dont want to see my dream place & then not be able to get in there.

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Christine Gordon’s answer
BEST ANSWER
Hi Cherwoh,

How are you? I hope you're doing well and that the information you've received from your neighbors and acquaintances hasn't got you feeling down. You should be happy because it's a great time for a buyer to be in the position that you're in with a terrific credit score and cash on hand to put down. You're always going to have naysayers whispering negativity in your ear regardless of your circumstances. Think POSITIVE... If your FICO score is 778 and you have zero debt then obviously you've turned your financial situation completely around. After 10 years, that bankruptcy drops off of your credit report so a coop board would be ridiculously strict to hold that against you and you wouldn't want to live among such snooty characters anyway. I specialize in the UWS and would be glad to work on your behalf as your exclusive buyer's broker in order to ensure that you're well prepared to get into the coop that you want. Please feel free to contact me so that we can discuss the criteria of what you're looking for in your dream home :-)

Looking forward,

Christine Gordon
Licensed Real Estate Salesperson
Cell: 917.881.2924
Fax: 347.328.9352
Apartment updates available at http://www.christinegordon.postlets.com
"Home is where the heart is."
3 votes Thank Flag Link Sun Feb 3, 2013
Thank you for your encouraging words. It's funny you say that about snooty characters because I always said I did not want to live in a place where my neighbors were on such a high horse that they couldnt come down to say good morning or loan me a cup of sugar.
Flag Sun Feb 3, 2013
My understanding and experience is that the bankruptcy disappears and no one has access to it.

Do call Dominick Sutera of Academy Mortgage at 516-249-4800 or email him at dsutera@bankamc.com.

Dominick trains and teaches mortgage people and will give you a straight shooting answer to your concerns.

gail@GladstoneGroupRealty.com
631-425-6150
1 vote Thank Flag Link Sun Feb 3, 2013
Thank you for the referral. I'll be contacting him. Although I've already gotten preapproved it doesnt hurt to get other quotes and feedback.
Flag Sun Feb 3, 2013
Dear Cherwoh,

While several of these responses are totally correct in that your past financial problems should not be an issue, some credit reports show incorrect information. After 14 years your bankruptcy should not be on your credit report. However one of my customers had this issue and worked wiith a credit repair company and everything was cleared up. She got her mortgage and her coop!

Don't be discouraged. Find a great agent whom you trust and who has a good reputation. Your dream can and will come true!

Ross Ellis
Licensed Real Estate Salesperson
Member of Real Estate Board of New York
212.317.7828 direct
770 Lexington Avenue, 10th Floor
New York, NY 10065
rellis@halstead.com
1 vote Thank Flag Link Sun Feb 3, 2013
Thank you.
Flag Sun Feb 3, 2013
No, not true. It was 14 years ago. This is no longer an issue. You're a great candidate with what you have to put down plus your great credit score there's nothing to think about.

Nick Rafello, SVP
Associate Broker
The Corcoran Group
212-444-7852
656-221-8321
nrafello@corcoran.com
1 vote Thank Flag Link Sun Feb 3, 2013
Thank you.
Flag Sun Feb 3, 2013
When choosing an agent, first ask whether it not they work for YOU and will keep your information confidential. Stay away from pubic open houses and working with the listing agent - who is required to share all of your financial information you choose disclose to the seller and, of course, the co op board.

Congrats on saving money and turning your finances around. Any co op board would be foolish to turn you down for this reason.

Good luck!
1 vote Thank Flag Link Sun Feb 3, 2013
I'll keep these tips in mind, thanks for the encouragement.
Flag Sun Feb 3, 2013
Well, I suggest you find a good agent who can advise you, and is totally familiar with board requirements in the neighborhood you want.

Also - if all else fails, you can always look at condos instead of coops, although they will be more expensive.

Congrats on getting your financial house in order! Bravo!

Best wishes...........
1 vote Thank Flag Link Sun Feb 3, 2013
Thanks for the encouragement. I'll take your advice and start looking to work with someone locally.
Flag Sun Feb 3, 2013
Well, Cherwoh, I have represented buyers (including one who is still working on the UN staff after 20 years) and also landlords in Morningside Heights and I have experience with co-op boards in that neighborhood who do not bother with details from more than 7 years ago but if you are worried about a past event of any kind I suggest that you try it this way: buy a co-op apartment all cash, move in and then apply for a mortgage after paying the monthly charges for the first one or two months (your financials are good for three months before updating is required) and if that does not ease your mind, don't buy a co-op, buy a condo.

William J. McBurney, Jr.
1st Prize REBNY Deal of the Year 2012
[Residential Rental Category]
Douglas Elliman Real Estate
212-769-6526
wmcburney@elliman.com
http://www.elliman.com/wjm
0 votes Thank Flag Link Tue Feb 5, 2013
14 years ago is really in the past! No coop bd would deny you based on this history.

If I can be of hel,please contact me at:

Ella Chavers
Douglas Elliman
echavers@elliman.com
0 votes Thank Flag Link Mon Feb 4, 2013
Hi Cherwoh, every board is different. Try working with an agent familiar with the co-ops in the area. Do you need help finding one that is experienced? I can help.
0 votes Thank Flag Link Sun Feb 3, 2013
Unfortunately all boards are different. My experience with this has been that if you can prove you have been on the mend for some time, it won't matter much to the boards. Hopefully you have a well documneted recovery to furnish if necessary.

Christopher Pagli
Licensed Associate Broker
Accredited Buyer Representative
William Raveis Legends Realty Group
914.406.9023
0 votes Thank Flag Link Sun Feb 3, 2013
Cherwoh,

It might very well be be true but nobody knows for sure what your situation will be even the best of agents, they're not a member of any of the boards you could potentially be interviewing with. The board's decision is subjective and can change each time with the wind. However, that shouldn't discourage you from seeking what you are looking for as your current status appears to be solid and model like. Good luck.

Janet Nation, CBR
Sailing Home Realty
Direct: 646-321-9649
Office: 516-377-4760
Licensed Real Estate Salesperson
http://www.jnationproperties.com
0 votes Thank Flag Link Sun Feb 3, 2013
Most coop boards are only concerned with what you have now in the bank, savings, and your liquid assets, in addition to your current salary and credit score. They typically only want records from 2 years back thus your past bankruptcy filing 7 years ago will not have an affect on their decision to approve you or not.

Nicole Sleighter
Citi Habitats
naleighter@citihabitats.com
724.880.2274
0 votes Thank Flag Link Sun Feb 3, 2013
Dear Cherwoh,

Before you make an offer a coop or condo you should understand that while the information you've been given is true, some coop and condo boards are more flexible than others. Be honest with your agent, lettng them know your complete financial history. They should be experienced with board packages and he/she can add a letter of explanation to the board package if necessary.

You should only monitor your credit once a year through http://www.annualcreditreport.com as checking your credit often can bring down your score.

It's a good idea to consult with a credit repair company as they could possibly find things on your credit report that will increase your scores. A group I've referred clients to is North Shore Advisory. Their phone number is 914-524-8300 and you could find that working with a credit repair company might be beneficial.

Good luck!


Ross Ellis
Licensed Real Estate Salesperson
Member of Real Estate Board of New York
212.317.7828 direct
770 Lexington Avenue, 10th Floor
New York, NY 10065
rellis@halstead.com
0 votes Thank Flag Link Sun Feb 3, 2013
It is possible that they might deny you because of adverse information no matter how long. I believe that it is something for each indivicual coop board. You should make sure your agent is familiar with the boards in which you are applying. Generally if your bankruptcy is so far in the past it will not come up on a regular credit check. With a good history over the last 7 years I don't believe you will have a problem in any but the most stringent boards.
0 votes Thank Flag Link Sun Feb 3, 2013
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