Home Selling in 11235>Question Details

Marie, Home Seller in New York

can i get a bank loan to cover all costs to sell a co-op brooklyn apartment which was paid for in cash?

Asked by Marie, New York Fri May 6, 2011

co-op has become disabled and needs family care. can no longer live on their own. has no assets other than small monthly social security check which covers monthly maintenance.

i have power of attorney for all financial matters but am also disabled and approaching senior years, and am also short of cash liquid assets to lay out all the money entailed for closing at the sale of the co-op., therefore i was wondering if i can get a bank loan using the brooklyn cooperative apartment as collateral, since it was a cash purchase paid in full by the co-op shareholder & the co-op has never had liens, loans or mortgages.

if the answer is yes please advise what type of bank loan is applicable, and could it be one with no early prepayment penalties, because when the co-op is sold as soon as the bank check clears we intend on paying off the loan in full and investing the balance in cd's for our disabled parent, who will also reside with us.
thanks for your advisement.

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0 votes Thank Flag Link Mon Jul 9, 2012
If the money is needed only for closing costs, you dont need to take a loan, if the coop was purchased in cash you will recieve money at the closing table.
Thank You
0 votes Thank Flag Link Mon Jul 9, 2012
Hi Marie
You are very welcome, good luck and if you need our help in selling it just let us know.

If you already have
an agent tell her to post it and forward it on to usas we may have a buyer for you.
0 votes Thank Flag Link Sun May 8, 2011
We wish to thank everyone for their very informative replies, and yes we were not aware that the closing costs are taken from the proceeds of the sale, and then the shareholder would receive a net check for the difference, as we never sold any residential property before.

With this enlightenment the shareholder will not require any loans whatsoever, and that is a grave relief.

Thank you again everyone!
0 votes Thank Flag Link Sun May 8, 2011
Dear Marie:

When you sell you do not have to pay any closing costs up front. All your closing costs will be paid at the closing table from out of the proceeds of the sale. Hence, if you are only wanting to borrow money simply to pay for the closing costs, it is not necessary.

If you need to borrow the money for other things that is a different story. Based on the info you provided I think it would be hard to get a loan, but you need to speak to a mortgage banker or broker to find out for sure. If you want, contact me and I can refer you to one/some.

Your best bet may be to just sell the place as soon as possible. The market is very busy in Brooklyn right now so it is a good time to sell. There are several strategies you can take to effect a quick sale. Give me a call and I can share them with you! Good luck!

Mitchell S. Feldman
Associate Broker/ Director of Sales
Madison Estates & Properties, Inc.
Office: (718) 645-1665/ Cell: (917) 805-0783
Email: MitchellSFeldman@aol.com
0 votes Thank Flag Link Sat May 7, 2011
Any loan would have to be by the resident of the Coop . You would have to qualify for the loan financially, by this I mean Income,equity which you do have and credit score. To get a loan on a co-op can be difficult due to the fact it is not considered real estate . All the closing expenses can be paid at the closing to which you will receive a net check to what would be left after all is paid
Web Reference: http://goo.gl/69w9c
0 votes Thank Flag Link Sat May 7, 2011
I have a coop that is about to go into contact and a number of qualified prospects looking for one. Give me a call if you would like some advice. Dale 646-552-8141
0 votes Thank Flag Link Fri May 6, 2011
Hi Marie
You could try to get a home equity loan - however, I believe Ann may be right you could pay it all at closing.
Is your coop listed with an agent now? if not please give me a call or email me directly I would love to come and see it and talk to you. additionally if you need the names of any attorneys i can give you some names
to call that can advise you exactly. the first consultation should alwyas be free by the way. Are you in new york city or brooklyn
0 votes Thank Flag Link Fri May 6, 2011
Consider consulting with an attorney who specializes in real estate, you will need one to handle the contract and closing; also do keep in mind closing costs incurred, such as attorney fees, broker fees, any flip taxes, etc., are paid at closing out of the proceeds of the sale.
0 votes Thank Flag Link Fri May 6, 2011
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