Two parties purchasing co-op, can shares be split?

[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?

 

[HomeGuru]

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.

 

[nym9]

**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?

 

[You Are Guilty]

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.

 

[HomeGuru]

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.

 

[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?

 

[HomeGuru]

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......

 

[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?

 

[HomeGuru]

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.

 

[nym9]

**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?