All About Co-op Foreclosures

FAQ

Are foreclosure auctions for unpaid co-op maintenance conducted like mortgage foreclosure auctions?
No. Co-ops which are foreclosed for unpaid maintenance, as well as co-ops which are foreclosed for mortgage default, are conducted by an auctioneer, rather than a court-appointed referee. Often these auctions are conducted at the Plaintiff’s Attorneys office or another location, rather than at a courthouse.

How much money do I need to bring to a co-op auction?
If you are the successful bidder at the auction, you will be required to make a 10% deposit of the amount you bid in a certified or bank check made payable to the Plaintiff’s Attorney.

How will I know if there are any open mortgages held against the cooperative unit that is in foreclosure for unpaid maintenance?
You won’t. Because co-operative units are not real property, there is limited access to mortgage information.

What do you mean when you say that co-operative units are not real property?
When you buy real property (a house, a piece of vacant property, a store, a condominium unit, etc.) you get a deed showing ownership. When you buy a cooperative unit, you receive a stock certificate indicating the number of shares that you own in the cooperative corporation and a proprietary lease which allows you to occupy the unit. Technically, you do not own the unit itself, you own shares in the corporation.