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06-30-2005, 04:13 PM
| | Member | | Join Date: Jan 2005
Posts: 80
| | | Two parties purchasing co-op, can shares be split?
What is the name of your state? NY State.
When two individuals purchase a co-op together, must they be co-owners of the total shares, or can they each own half of the shares? |
07-01-2005, 12:32 AM
| | Senior Member | | Join Date: May 2000 Location: Catatonic State
Posts: 75,781
| | Quote: |
Originally Posted by nym9 What is the name of your state? NY State.
When two individuals purchase a co-op together, must they be co-owners of the total shares, or can they each own half of the shares? |
**A: it depends upon the rules of the coop. |
07-01-2005, 01:17 AM
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Originally Posted by HomeGuru **A: it depends upon the rules of the coop. | I want to pay for 50% of the shares (if allowed), but I want to make sure I have no risk if the party with the mortgage stops payments.
Assuming one is allowed to purchase individual shares, how would a sale work if one party paid in full and the other party has a mortgage? |
07-01-2005, 07:12 AM
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Posts: 7,578
| | Quote: |
Originally Posted by nym9 I want to pay for 50% of the shares (if allowed), but I want to make sure I have no risk if the party with the mortgage stops payments.
Assuming one is allowed to purchase individual shares, how would a sale work if one party paid in full and the other party has a mortgage? | It depends on the rules of the bank. But I seriously doubt any bank will take a mortgage on only half the shares, even if the co-op permits it.
__________________ Quote: |
Originally Posted by me Then start crying uncontrollably. If that doesn't work, fill your pants with shaving cream and start screaming about the voices in your head. Maybe they'll feel bad enough about your other problems and let you out of the ticket. | |
07-01-2005, 09:57 AM
| | Senior Member | | Join Date: May 2000 Location: Catatonic State
Posts: 75,781
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Originally Posted by nym9 I want to pay for 50% of the shares (if allowed), but I want to make sure I have no risk if the party with the mortgage stops payments.
Assuming one is allowed to purchase individual shares, how would a sale work if one party paid in full and the other party has a mortgage? | **A: that plan would not work as a lender would not approve. Also even if the lender did approve, if the mortgagor stopped paying your shareholder interest would be the banks to deal with. |
07-01-2005, 04:26 PM
| | Member | | Join Date: Jan 2005
Posts: 80
| | | Thanks for the info, so the bank would not approve because if the borrower defaulted, they can't get the co-op to sell, only half its shares.
Then I guess the only possible method would be to use one mortgage, but each person still owning 50% of the shares, instead of both owning 100%.
Is this a common request for the board? Is it recommended? |
07-02-2005, 02:00 AM
| | Senior Member | | Join Date: May 2000 Location: Catatonic State
Posts: 75,781
| | | [quote=nym9]Thanks for the info, so the bank would not approve because if the borrower defaulted, they can't get the co-op to sell, only half its shares.
Then I guess the only possible method would be to use one mortgage, but each person still owning 50% of the shares, instead of both owning 100%.
Is this a common request for the board? Is it recommended?[/QUOTE
**A: No and no...... |
07-02-2005, 03:27 PM
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| | [quote=HomeGuru] Quote: |
Originally Posted by nym9 Is it recommended?[/QUOTE
**A: No and no...... | Why not? How are there more negatives to owning half the shares myself, than owning all the shares with an associate? |
07-04-2005, 01:48 PM
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Originally Posted by nym9 Why not? How are there more negatives to owning half the shares myself, than owning all the shares with an associate? |
**A: read my posts. |
07-05-2005, 01:04 AM
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Originally Posted by HomeGuru **A: read my posts. | All you wrote was " if the mortgagor stopped paying your shareholder interest would be the banks to deal with."
If I bought and paid for 200 shares, and the borrower stopped paying for their 200 shares, what does the lender have to do with me?
And even if it does, how is that WORSE than if we both purchased 400 shares together? | |
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