Coop Mortgage Approval Rights

[gcestaro]

I'm wondering if anyone has ever challenged in the courts the ability of a coop board to require 100% cash payment in order to approve the purchase of an apartment.

It appears there is affordable (by NYC standards) housing to be purchased, but often in buildings that require 80-100% down. That seems like it amounts to discrimination when I can afford a mortgage on a $250,000 apt, but I can't afford to pay cash.

I understand the logic of the law: the building is owned by a corporation and they can sell their stock to whomever they wish. However, private homeowners of stand-alone houses can't require a cash-only purchase, can they? Corporations are supposed to be seen by the law as an individual, which would seem to say that they should not have rights that an individual home seller doesn't have.

This is not Earth-shattering for me; I'm just curious if anyone knows about these laws. Thanks!

<small>[ October 20, 2004, 10:55 AM: Message edited by: Baby G ]</small>

[laslo]

However, private homeowners of stand-alone houses can't require a cash-only purchase, can they?

Yes, they can.

[Anna]

100% cash does not always mean 100% cash. Sometimes being pre-approved for the mortgage is all they really want.