New Yorkers who are rejected by a co-op board should not lose hope, as they may be able to get the board to reconsider their applications.
Let’s say you find the perfect apartment in a co-op, submit a board package, go on the interview and are promptly turned down. Most people lick their wounds and move on, but many do not realize they still may have a chance. Real estate attorney Sandor Krauss says in rare cases, an applicant can get a board to reconsider.
“No is usually no. However, there are times where certain circumstances that are unique to your application can be amended or revised to help the co-op board think that you are a better or more qualified applicant,” says Krauss.
First, he says you should talk to your attorney or agent and go over your interview. Try to think if there was anything that happened that could be the reason why you were rejected.
If you think elements of your application were misinterpreted or if there is something you can easily change, he says your attorney should draft a pleasant letter that asks the board to reconsider based on the changes.
Typically, rejections are because of finances. Maybe you can offer additional financial information to clarify a misconception or offer some solutions.
“We may offer a significant time in escrow or maybe two years of maintenance, a guarantor,” says Krauss.
Sometimes it could be as simple as reworking the contract. For example, instead of having a guarantor, the board may prefer that person be a co-purchaser.
If it is not financial, ask yourself if it is something you can change. For example, if you are a musician, would you agree to practice elsewhere or during limit hours? Would you be willing to scale back that major renovation you told them about? If you are willing to make a change, you should certainly let them know.
Also, see if the seller may be willing to make an appeal on your behalf.
“The seller has standing, the seller is the shareholder. And there are times, especially in small co-ops, where the seller knows the board and maybe appeals to the board on behalf of you saying, ‘Look, I’ve presented everything I can. This guy’s got great financials. What’s the problem here?’” says Krauss.
While Krauss says these tactics rarely work, it really depends on the extent of the revision. If you think you or your financial standing have been misunderstood, it certainly can’t hurt to ask
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