Legal Question in Real Estate Law in New York

Cooperative Apartment - Mortgage

The building where I own my Co-operative Apartment has filed Bankruptcy (Chapter 11). The judge has not made a decision yet whether to dissolve the cooperative or have it regain a Rental stature. This would mean that they will be forfeiting on their Mortgage. We also have individual mortgages that we promised to pay. it isn't our fault that the cooperative is being changed back to a rental.

My question is: If the building complex goes back to being a rental (of course forfeting their mortgage), why must we continue paying our individual mortgages?


Asked on 9/16/03, 10:08 pm

1 Answer from Attorneys
Arnold Nager Arnold H. Nager, Esquire

Re: Cooperative Apartment - Mortgage

You agreed to pay your private mortgage. Since the security interest, your shares of co-op stock, will no longer be available the lender will look to you and your other assets.

The debt may be dischargable if you file for bankruptcy.

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Answered on 9/28/03, 7:53 pm


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