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If we convert to a condo, we know that we have a small number of residents that are in arrears for modest amounts.
On the date pf a conversion wherein stock certificates are exchanged for deeds, what is the best way to ensure that the surviving homeowners association (HOA) is not saddled with any “debt”.
One thought is to place a lien on an apartment such that a title search will disclose a claim against the owner. In effect, this should establish a primary claim against the owners.
However, if the shareholder cannot convert a coop loan to a condo mortgage or obtain a reverse mortgage, this encumbrance may thwart the orderly conversion process.
In effect, the HOA would operate a coop corporation for a limited period of time until the arrears are satisfied.
May I have some views or interpretations?
Yes, we are seeking advice of counsel, but with so few coop-condo conversions there is not much to review any outside assistance would be welcomed.
so then, what is the co-op's recourse?
Just correcting the heading
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I thought the co-op has the right to foreclose on a unit when the shareholder doesn't pay the maintenance. The process probably will take "forever", but I am sure the conversion process (co-op to condo) will take just as long.
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