Home Buying in Gramercy Park>Question Details

wilmar2064, Home Buyer in New York, NY

Is legal that the Astoria bank charge me flip tax on my loan? the seller is going to pay this rate

Asked by wilmar2064, New York, NY Tue Sep 18, 2012

the bank said that cost is incase that we didn't pay his loan,

Help the community by answering this question:

Answers

6
A Flip Tax is a tax imposed by the cooperative on the sale of a unit, it is not charged by Astoria bank. The flip tax can be paid by the purchaser, seller, or shared by both parties; but it is customarily paid by the seller. The flip tax is a revenue generating tool used by the cooperative to increase its reserve fund, it is not used by Astoria bank.
2 votes Thank Flag Link Thu Oct 25, 2012
Good morning Wilmar2064,

The "Flip Tax" is a fee charged by the Cooperative, NOT the Lender. Check with your Managing Agent or the By-Laws of the Cooperative. You can also verify this information wtih your Attorney.

Astoria Federal doesn't so much as charge the flip tax as much as disclose it to you and account for the flip tax in the Loan To Value calculations when determining the maximum loan amount. That means your maximum loan they can give you might be lower than you originally applied for due to the flip tax calculation. This is all standard procedure on Cooperative Loans in New York area.

The person at the bank telling you that crazy reason about "not paying the loan" is WRONG.

FYI: Loan Officers working at Depository Institutions are NOT LICENSED. You're not the first consumer to get incorrect information from a LO working at a regular bank. I had a client earlier this year who was told by an LO at a bank that the client was exempt from the NYS Mortgage Tax because he was a Veteran. No such exemption exists. Loan Officers like myself who work for Mortgage Banks are LICENSED. There is a HUGE difference in the quality of service and accruacy of information.

Trevor Curran
NMLS #40140
Mobile: 516-582-9181
Office: 516-829-2900
Fax: 516-829-2944
PowerHouse Solutions, Inc.
185 Great Neck Rd, Suite 240
Great Neck NY 11021
Licensed Mortgage Banker – NYS Dept. of Financial Services
NMLS#3528
2 votes Thank Flag Link Wed Sep 19, 2012
Are Flip taxes required to be paid in a Co-op refinance transaction?
0 votes Thank Flag Link Mon Oct 15, 2012
Sounds like the bank charged you a mortgage recording tax - you may want to clarify with them what exactly that was. It should be in the HUD form - ask them for a preliminary HUD form or itemized closing costs estimates (GFE), depending on what state of the process you are at.

all the charges should be listed there and you can ask your loan rep to clarify on any of the line items
0 votes Thank Flag Link Sat Sep 22, 2012
Not sure the question is fully understood--however for any necessary legal information do consult with your attorney. Ask your loan officer for clarification, and or, if the loan package is not to your satisfaction consider shopping other lenders....
0 votes Thank Flag Link Wed Sep 19, 2012
If I could understand your question,
I might have an answer for it.

My bet would be, that the Bank isn't going to do anything ILLEGAL.
Especially if you signed the papers.
0 votes Thank Flag Link Tue Sep 18, 2012
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2015 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer