We just found out that the current Mortgage of a potential buy (at 4.75%) is going to be up for refinancing.

Asked by Saran, New York, NY Mon Aug 25, 2008

Would this result in an increase in monthly maintenance fees? Based on historical analysis of the co-op (by speaking to a management agency rep) it would, by about $50/month every 5 years. An increase to current rates would mean approx. 6.75%, and this information wasn't fully or voluntarily disclosed to us. It seemed a little sneaky on the Seller's part. Now one of the main draws of this co-op was its low maintenance fees, but now, we may end up in the range of other co-ops, negating this benefit. But we found this out after our offer was made. What can we do now? It's not like we can make a different offer once the contract is drawn up right? And the new fee, would happen on or about the closing date- what a welcome?!

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Chris L. Chr…, , New York
Fri Aug 29, 2008
It appears that you are discussing the underlying mortgage. This should be discussed with your attorney. Your attorney and mortgage company are each responsible for reviewing the Coops' financials. Whether you can withdraw is a function of the contract you signed. Review the contract. Speak to your attorney.
The bank may or may not approve the loan based on the underlying note. Check with your mortgage provider.
0 votes
Antolin Du B…, Other Pro, New York, NY
Wed Aug 27, 2008
I think that Saran is talking about the underlying mortgage of the whole building. You know, the one that every old person in the building wants to make bigger and longer and use to put flowerpots in all the windows, and all the young people want to pay off. Yeah, that one, the one that always generates a LOT of contention between the savers and the spenders within the building. And the one that everyone pays for, even those people who didn't want flowerpots to be paid for over 40 years.

Another reason why co-ops suck, except for the the very young who can afford no better, and the very old who don't want to do the maintenance. (Even better for them, borrow to have extra maintenance done, and let the very young pay for it.)

Antolin
0 votes
Thomas McGiv…, Agent, Farmingville, NY
Tue Aug 26, 2008
Sounds like you're talking yourself out of buying. Not uncommon. The mortgage has nothing to do with the monthly fees. Are you assuming the loan - and the current owner has an adjustable that's adjusting soon???

If you're not in full executed contract - you can still walk. If you paid for inspection or appraisal, then you'll be out that money.

BUT - don't just talk yourself out of it. Do you like it????
0 votes
Debt Free Da…, , 85260
Mon Aug 25, 2008
The mortgage should not have anything to do with the maintenance fees.
0 votes
shong, , New York, NY
Mon Aug 25, 2008
Were you looking to assume the mortgage of the current owner? I dont see why that would affect your maintence fees. Mortgages and your maintenance are 2 totoally different things and do not affect one another directly. Or am I misunderstanding your question? sunny_hong@countrywide.co
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