Each co-op maintains a list of "approved" or "recognized" lenders. Because the lender will have an interest stake in the cooperative corporation, the co-op must recognize this stake and allow the lender to have a say in what happens if an owner defaults on his or her mortgage. Generally, each year the co-op must send financial information to lender(s) it has a recognition agreement with in order to keep that recognition agreement in place. Thus, keeping recognition agreements, in effect, costs a co-op some money. To limit its costs, most co-ops will only "recognize" two or three lenders. That means a buyer must use one of those lenders. The only alternative is for the buyer to pay cash to purchase the co-op.
Veronika Baba Kian Realty NYC
phone 347 528 5573