Sept2017

nearly as much “bad debt” as condos and generally collect a significantly higher portion of arrears lessening the burden on other shareholders. Furthermore, in a condo the collec- tions process, in particular foreclosure, can drag on for a significant period of time (in some cases years) resulting in delinquent owners owing many tens, if not hundreds, of thousands of dollars. Co-ops do not file “foreclosures” in the same sense as a condo. Instead, the co-op’s attorney sends the shareholder (and lender, if applicable) in arrears a Notice to Cure (compliant with the Fair Debt Collections Practices act and the governing documents) giving the shareholder a period of time to cure. In the event that the shareholder does not cure the arrears, the shareholder is served with a notice to terminate,

practice is to file a law division action for, among other things, termination of the shareholder’s interest in stock and lease and ejectment from the apartment. Such “co-op” ejectment actions may result in a judgment of, among other things, possession within 4 to 6 months. Upon receipt of the judgment, the co-op markets and sells the unit, and distributes the proceeds first to the co-op to satisfy arrears, and, if autho- rized by the governing documents, attorney fees and costs incurred. The remaining funds are then distributed to others, such as the lender and owner, as their interests may lie. An additional delay of 1 to 2 months may be required if the occupants of the apartment must be ejected and locked out by the sheriff. Therefore, a CONT I NU E S ON PAGE 52

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indicating that in a period of time the shareholder’s interest in the stock and lease will terminate (in many cases 10 days). Upon the expiration of the 10 day period, and assuming the shareholder has not signed over the stock and lease to the co-op, the usual

ACCURATE, REALISTIC FUNDING PLANS OVER 2,000 RESERVE ANALYSES PERFORMED

The Falcon Group prides itself on having a strong, talented team of five (5) licensed Reserve Specialists (RS). Since 1997, we have provided over 2,000 Reserve Studies to communities and building owners. We want to be your partner for success to protect your assets through an accurate, pro-active and realistic reserve funding plan and with your next capital planning & improvement project. Contact us today for more information.

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