Co-Purchaser vs. Guarantor
I am trying to sell my co-op apt right now and have lined up a buyer. The buyer does not make enough income on his own qualify for the apartment, but his father, a rich dude, is willing be a co-purchaser. However, I have just been told by my coop board that they frown upon…
I am trying to sell my co-op apt right now and have lined up a buyer. The buyer does not make enough income on his own qualify for the apartment, but his father, a rich dude, is willing be a co-purchaser. However, I have just been told by my coop board that they frown upon co-purchaser and will be more inclined if it is a guarantor situation. I am thoroughly confused now, maybe someone can provide some much needed clarification?
Why is guarantor more desirable than a co-purchaser? From a finance perspective, I would thought the co-op would prefer to have the rich dude’s name on the property.
Since the buyer does not make enough money on his own to qualify for a loan, I am not sure that a guarantee from the father would do any good from a lender’s perspective.
Can someone educate me? Thanks.
Babs… that might be so but brooke astor is not responsible for whats in the trust. After all, she didn’t set it up. She inherited it. Brooke probably had no clue just that she had it and got a nice income from it.
More than likely she probably never added anything to it either.
I wish you the best of luck no matter what decision you make.
Babs,
Thank you for your thoughtful response. The offer is 5% lower than my purchase price in early 2008; given the soft market, I don’t think it is a lowball offer.
There is no rule against co-purchasers in the bylaws, even the managment agent has indicated that co-purchaser is not necessarily a deal-breaker, but the board seems to believe otherwise. The board is obviously free to reject or approve any buyer, so they can sort of make up the rules as they go. The buyer seems very nice person, but his income is really quite low compared to the price of the co-op. His dad, on the other hand, is very well off. There will no problem of them getting a loan with Dad as co-signer, but he won’t get a loan with Dad as guarantor. Hence my problem. Otherwise, I don’t think the buyer will care if the dad is a co-purchaser or a guarantor.
Babs,
Thank you for your thoughtful response. The offer is 5% lower than my purchase price in early 2008; given the soft market, I don’t think it is a lowball offer.
There is no rule against co-purchasers in the bylaws, even the managment agent has indicated that co-purchaser is not necessarily a deal-breaker, but the board seems to believe otherwise. The board is obviously free to reject or approve any buyer, so they can sort of make up the rules as they go. The buyer seems very nice person, but his income is really quite low compared to the price of the co-op. His dad, on the other hand, is very well off. There will no problem of them getting a loan with Dad as co-signer, but he won’t get a loan with Dad as guarantor. Hence my problem. Otherwise, I don’t think the buyer will care if the dad is a co-purchaser or a guarantor.
Actually Ysabelle a lot of the Astor fortune was made on shady dealings (like the Rockefellers, Kennedys, etc.), but that’s not really the point.
And var, depending on the people in your building, acting out might just make them more determined than ever to sink any buyer you put up, and to have you evicted and your shares taken by the board.
Here is a good one.
The trust fund of Brooke Astor…….Does it consist of drug and prostitution money?
Seems an earlier post of mine has gone missing, so I’ll try again, since it does relate to the original question. var, do the co-op’s by-laws specifically prohibit co-purchasors? If so, it’s not likely they will change them just for you. How attractive is the buyers’ offer? I have heard of co-ops that turn down applicants if they believe the offer is too low, as a low purchase price will negatively impact their property values. Quite honestly, if this guy’s income isn’t cutting it and he’s getting a bargain price to boot, I might not want that precedent in my building either. So I’d say that if it’s a good price and apart from the son’s low income he seems like he’d be a good addition to the building, it may be worth a shot. But if it’s a lowball price and/or it seems like he won’t get along with existing owners, you’re probably better off holding out for someone else. If you are selling through a broker, he/she should talk to colleagues who have handled transactions in the building before and get their advice. Otherwise your lawyer should be able to come up with some suggestions. Good luck!
We have offered up the escrow option, but the board is not really showing interest when we sounded them out. We have not officially submitted this buyer to the board yet, since Board has already said that they frown upon “co-purchasers”.
Maybe I should just make a big enough pest of myself that the building will just be happy to get rid of me and accept any buyer. Naked dancing in the hallway?!
“trust fund money is dirty money, it’s no different than drug dealer and prostitution money, in fact it’s worse. ”
OK that’s just plain stupid (unless whoever established the trust was a dealer or pimp). I generally ignore this sort of posts but that’s just too much to let pass.
Hey Rob
Trust fund money is generational. It consists of a stock and bond portfolio.
Aristocrats, daughters of the american revolution, old line families etc., have nothing to do with drug money. This social class has nothing to with deriving income from drugs or prostitution.
You watch too much tv and read too many trashy novels. Trust funds have nothing to do with watching”Dynasty or “Dallas”. These programs are strictly fantasy.
Do you discriminate against everyone that is not like you?
Divirsity is good for the economy.