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Handling Rejection


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.

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