News & Insights

Home » News & Insights » Handling Rejection

Handling Rejection

Other

The Co-op application process comes with a lot of paperwork and even more questions. Being approved for a mortgage loan is hardly the first barrier to entry. Co-ops can throw hurdle after hurdle to the point that you may feel discouraged from continuing, and if you receive a rejection, you may think you’ve reached the end of the line.  In most cases, you’d be right.  However, there are a few instances in which tenacity may pay off.  These cases are few and far between, but if your heart is set on a property you may benefit from a little persistence.

In some cases, appealing an initial rejection may be viable.  Though, before you attempt an appeal, it may be beneficial to know the rationale behind the Co-op board’s initial rejection. That said, the board is in no way obligated to provide this information, so approach them with courtesy.  Delicacy is needed here, or you run the risk of further alienating a group already not inclined to grant you favors. Be sure to review your application package for weakness or inaccuracies, and if an interview was part of the process (as it almost always is), try to remember the topics discussed that may hint at the reason for your rejection.

Once you’re ready to resubmit or appeal your application, don’t ask permission – just do it.  Here, a lawyer may be helpful, as a letter from a lawyer to the board and managing agent will probably carry more weight than one from you or your broker.  If your finances were the problem, one option is to offer up an advance on property taxes and maintenance fees to the building, as a show of good faith on your part.

Even if your appeal is flatly rejected, don’t despair.  In a city where real estate certainly is not suffering a shortage, there are many buildings to choose from.

Recent Posts

Impact of Shorter COVID-19 Quarantine on Workplaces

On Monday, the CDC announced changes to its recommended isolation and quarantine time from 10 days to 5 days for asymptomatic people with COVID-19. They recommend that people leaving isolation after 5 days continue to wear a mask for the following 5 days. The CDC also...

Restaurants Sue Over Vaccine Mandate

Restaurant operators sued Mayor Bill de Blasio and New York City over Key to NYC, the new indoor vaccine mandate program, on August 17-the same day the mandate went into effect. A group of restaurants in Staten Island, through the Independent Restaurant Owners...

Financial Regulators’ New Target: Social Media Influencers and SPACs

The Financial Industry Regulatory Authority (“FINRA”) will conduct three new regulatory sweeps in an effort to combat various activities causing extreme fluctuations in the financial markets. FINRA has chosen to target special purpose acquisition companies (“SPACs”),...

Does WARN Apply to Virus Closures?

Enterprise, in Benson et al. v. Enterprise Leasing Co. of Florida LLC et al., has tried to argue that the Worker Adjustment and Retraining Notification Act (“WARN”), through its natural disaster exception, does not apply to closures caused by COVID-19. Two Florida...