Home Buying in 90401>Question Details

D, Home Buyer in Santa Monica, CA

This is a co-op with an underlying mortgage -what does this mean when buying a condo

Asked by D, Santa Monica, CA Tue Mar 6, 2012

Help the community by answering this question:

Answers

4
Tracey Hennessey’s answer
The underlying loan on the co-op is an umbrella loan on the entire co-op. The loan has a separate amount for each unit
usually deping upon the size of the unit or the # of shares for that unit. You do won your individual unit although untill the loan is paid off it will transfer with the property. It is somewhat uncommon here on the Westside but there are several co-ops, one in particular is 201 Ocean Avenue which has a very good reputation and provides a magnificent lifestyle. The co-op loan or underlying loan is in addition to the hoa dues and mortgage if you have on. I have done several transactions in that particular building and can hjelp you if you are interested.Let me know if I can be of help 310-779-6375
Tracey Hennessey http://www.traceyhennessey.com
0 votes Thank Flag Link Wed Mar 7, 2012
Hi David,

In a co-op you are buying shares in a corporation and given the proprietory lease to an unit. You do not own real property.

If after reading the answers to your question, you'd like to buy a conventional condo or home, please fee free to contact me and I'd be able to answer any other questions you may have.

Elizabeth Sorgen
310-469-0500
0 votes Thank Flag Link Wed Mar 7, 2012
Co-op and condo are 2 different types of ownership. In a condo you own your unit therefore the mortgage can only be given on the unit. You also pay for the upkeep of the common areas (and you own a percentage of it) in your common charges. In a co-op you are buying shares in a corporation and given the proprietory lease to an unit. You do not own real property. You pay a maintenance fee which covers the underlying mortgage (mortgage on the building) and property taxes.
0 votes Thank Flag Link Wed Mar 7, 2012
Briefly it means that there is mortgage on the building that each owner pays a portion of, in addition to the Homeowners dues and your personal mortgage. .

Megan Whalen
Gibson International
MeganWhalen@verizon.net
310-613-1102
0 votes Thank Flag Link Tue Mar 6, 2012
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2014 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer