Archive for the ‘Co-Op’ Category

Manhattan Chapter 7 Bankruptcy Attorney discusses the emotions behind filing for Bankruptcy

Monday, August 9th, 2010

When you’ve dealt with as many Chapter 7 Bankruptcy cases in Manhattan or Brooklyn or Queens as I have, a particular type of client emerges. You know, almost within the first few minutes of walking into the door, whether that person will be filing Chapter 7 Bankruptcy at that time….or not. You know because its an emotional response.

The first type of client, lets call him/her, “The Filer” (I didn’t go to Law School for originality) comes in and says “Hi, Im in debt way over my head and I need to file for Bankruptcy”. That person, as is pretty obvious, is likely filing for Bankruptcy right then and there. They’ve gone through the options, figured out they don’t make sense and has decided to take control and get out of this debt.

The second type of client is the “Meh” client. This client comes in and knows that Bankruptcy will likely be their best option, but they still have a multitude of concerns. Everything to “When is my credit coming back” to “What happens if I get a higher paying job after filing for Bankruptcy.” However, this client, emotionally, is also ready to file. They just need some reassurance that this is not financial armageddon.

The third type of client is the “Cmon” client. Ive had two of these in the past week. It’s an odd situation. This type of client is different from 1 and 2. They want to be re-assured that Bankruptcy ISNT right for them. And for some people, its not. People who have a small amount of debt and a large amount of income. People who have a large (over $100,000) amount of equity in their homes. People who own brand new cars outright. But many of these people that come see me do not have this issues. They simply believe that Bankruptcy is a trick. “What do you mean I get to get rid of this debt.” “Why wouldn’t everyone file for Bankruptcy then?” “Are you a cop? (j/k)” In any event I explain to these clients that they arent emotionally ready to file (like Jennifer Love Hewitt in the Ghost Whisperer) and that they should take some time to think over their options again. Many of them are in such financial dire straits that there is literally nothing that will get them out of their hole other than Bankruptcy, but they refuse to accept it, and there is only a limited amount I can do as a Bankruptcy attorney to get them there.

Its my pleasure and realistically I am blessed that so many clients meet with us on a weekly basis to discuss their options. Its just that at the end of the day Chapter 7 Bankruptcy in Manhattan is as much an emotional decision as it is a legal one.

No matter what client you are, we’d be more than willing to talk to you about your options.

Posted in Cars in Bankruptcy, Co-Op, Credit Cards, Debt Settlement, Gersh Blog, Homes in Bankruptcy, Jobs and Bankruptcy | View Comments

Manhattan Real Estate Lawyer and Blogger Daniel Gershburg discusses problems with lenders

Monday, February 1st, 2010

As a Manhattan Real Estate Lawyer I deal with real estate purchases in New York City on almost a daily basis.  And as this recession and literal tanking in the real estate market has occurred across New York it is painfully obvious that lenders have absolutely no idea what they are doing.  Now you may call this a rant, and you are justified in doing so, however I think its absolutely ridiculous to discuss an improving real estate market in the greater New York area without discussing what appears to be this general absurdness that comes with working with lenders these days.

Case in point.  My client is selling a co-op apartment in  Brooklyn.  Again, she is SELLING the apartment in Brooklyn, not buying it.  Weve found purchasers who are paying cash.  We have a closing date.  But we cannot close because the bank is unable to send us the stock and lease (analogous in some respects to a deed for a home).  Weve called in approximately 10 times (not a typo) and have been on hold each time for approximately 30 minutes.  Th bank cannot tell us why they cant send us the stock and lease and state that someone will get back to us within 24 hours or 2 weeks.  Can you imagine if you called a friend and they said they would either get back to you later today, or Mid February.  Unless this was your mother in law where youd be happy to wait the 2 weeks, you would not be pleased.  We were not pleased.  Also the bank cant communicate with the proper department because that department doesnt have phones.  The dept has live people, and computers, but no phones.  Again Id like to emphasize all we are currently looking to do is pay the bank lots of money but the bank is saying “We know, and wed love to take the money, but we cant take the money, we dont know why we cant take it, and we dont know when we could tell you why we cant take it, but someone may or may not be able to tell you why we cant take it within 2 weeks.”

On another closing, the bank appraised a home for a certain sum and said “Youre ok to close.”  They then came back the following week and re-apraised the house for $50,000 less.  Lets again use a real life example.  I come to you and tell you Id like to buy your Mercedes, and that Id be willing to pay you $20,000 for the car and tell you I’d like to meet you the following week to pay you.  You agree.  The following week I show up announced and say “Let me look at the car again” and after looking at the identical car I tell you I will pay you $14.32 right now on the spot.  Absurd no?  Well folks welcome to 2010, the year when the recovery will hit.

In business, companies are always obsessed with bottom lines, and thats normal.  However, when you’re looking to buy a home in New York City and the lender is telling you that they’re telling you that they dont have phones, there is something wrong.  No business can recover financially if they are acting completely irrationally.  You may be reading this and thinking that there is something more to the story.  Something is missing because it doesnt make sense.  I wish there was.  Our firms Manhattan Real Estate practice has shifted in that we now do so much more on a daily basis for our clients than we ever have just to get them into the homes they wanted.  There really should be no discussion of a bottoming of the market in New York City without discussing why we’re stuck here now in the first place.

Posted in Co-Op, FHA, Gersh Blog, New York City Real Estate | View Comments

Sheepshead Bay Real Estate Lawyer discusses Sheepshead Bay Co-Op Closings

Friday, October 16th, 2009

So you want to buy a co-op in Sheepshead Bay do you?  Buy you have questions that your real estate broker refuses to, doesn’t, or cant answer.  What do you do?  You speak to your trusty Sheepshead Bay Real Estate Lawyer Daniel Gershburg.

So Mr. Sheepshead Bay Real Estate Lawyer, what is the best advice you can when purchasing a co-op in Sheepshead Bay?  Well, what I can tell you is that when you buy a co-op in Sheepshead Bay, or anywhere for that matter, the first thing you should do is do some internet research on the address.  You can try looking on Trulia.com.  But my search would be more general.  There are tons of forums online discussing issues with co-ops.  From aggrieved co-op owners complaining about poor management to lawsuits against corporations, you can find everything.  But thats just the start.  You should also ask your real estate broker about whether they have had past clients in the building and if they could put you in touch with any so you can ask them about their experiences.  Is this out of the box?  Absolutely.  But it works better than many other things out there.  Do your research before you purchase a co-op in Sheepshead Bay.

Great tip, Sheepshead Bay Lawyer Daniel Gershburg, but lets say I am purchasing a co-op in Sheepshead Bay.  Ive done my research, spoken to people in the building, and now I have my interview.  What can I expect?

Anything.  That’s right, anything.  A co-op is a corporation.  The board of directors are therefore making a business judgment as to whether or not you “fit in” financially and otherwise with the building.  Now unless you have a habit of fighting pit bulls in your apartment, you’ll likely be fine so long as your financials are ok.  Having said that, IF you are rejected for one reason or another, the co-op technically does not have to disclose the reason you were rejected, other than saying, “Sorry you can’t live in this co-op in Sheepshead Bay, try Brighton Beach.”  Yes yes you can try and sue and all those good things, but it will cost you money and will usually not leave you in any better position.  The best way to avoid this embarrassment is to literally be as prepared as possible.  Each co-op has a “package” which has to be prepared including your financials,references, etc.  Make sure you go over this diligently before the meeting and everything is complete.  Make sure you look prepared for the meeting.

When you buy a co-op in Sheepshead Bay, when will the closing take place?

This is one of those “Why is the sky blue?” questions.  There are so many variables involved here.  Typically a closing for a co-op in Sheepshead Bay will take place immediately after the co-op approves the individual and the bank clears financing.  There are, however, many hurdles and obstacles that your attorney will have to navigate for you.  Sometimes the bank is late, or they haven’t apprised you of issues they have, which delays financing.  Sometimes the board won’t meet for several months, thereby delaying the closing and causing you to make sure your rate for your loan is locked with the bank.  Sometimes the management companies attorney will request a delay in closing to make it occur at a convenient time for them.  There are literally multiple variations that could delay your closing, so make sure you choose an experienced Real Estate Lawyer in Brooklyn to help you through this.  It’s not a sales pitch, its reality.  Just ask anyone who has gone through the process.

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Posted in Co-Op, Gersh Blog, New York City Real Estate | View Comments

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