What is the name of your state (only U.S. law)? New York
One year ago my Coop board has decided to convert our Coop building to condominium. The building has outstanding 2,000,000 loan. Our building loan is commercial and it is up for refinancing. When conversion company presented the case, the outcomes seemed positive, lower payments and higher market value, the only catch was to spread overall buildings loan between tenants. For one bedroom apartment i would have to pay $30,000 portion of the loan, plus $4,000 conversion fees and $5,000 closing cost. When the conversion company proposed the closing date loan rates were as low as 4.25%. So 85% of the tenants have voted yes for the conversion.
By now they have postponed the conversion 3 times and loan rates are at 5% and rising. Because the original sponsor owns more than 12% of the shares and dose not want to cooperate with the conversion, we have to get unwarrantable loans. Most of the board members have paid of their loans and are paying their building share with cash. So for them this conversion is still appealing.
How hard is it going to be to sell this apartment with un-warrantable loan?
How much bigger are the rates for unwarrantable loan?
Can we get out from the conversion?
One year ago my Coop board has decided to convert our Coop building to condominium. The building has outstanding 2,000,000 loan. Our building loan is commercial and it is up for refinancing. When conversion company presented the case, the outcomes seemed positive, lower payments and higher market value, the only catch was to spread overall buildings loan between tenants. For one bedroom apartment i would have to pay $30,000 portion of the loan, plus $4,000 conversion fees and $5,000 closing cost. When the conversion company proposed the closing date loan rates were as low as 4.25%. So 85% of the tenants have voted yes for the conversion.
By now they have postponed the conversion 3 times and loan rates are at 5% and rising. Because the original sponsor owns more than 12% of the shares and dose not want to cooperate with the conversion, we have to get unwarrantable loans. Most of the board members have paid of their loans and are paying their building share with cash. So for them this conversion is still appealing.
How hard is it going to be to sell this apartment with un-warrantable loan?
How much bigger are the rates for unwarrantable loan?
Can we get out from the conversion?