Unit values were 1/2 or less than they were at the market height with some owners being up-side-down with their mort-gage vs market value of the units. Some owners were forced into foreclosure, further reducing unit values.
There were no lenders that were willing to finance new purchasers or refinance existing member loans. Units sold all cash at depressed prices.
Years of unpaid property taxes, deficit spending and three mortgages had the co -op facing foreclosure.
The conversion created immediate market acceptance and lift prices by at least 80%. Owners who wanted to sell can now afford to payoff their loans thereby reducing the foreclosures in the building and increasing unit prices.
As condos, units now qualify for loans with unlimited lenders. Fannie Mae project approval will provide the best terms and support higher unit values.
Hutton arranged a new Group Loan for the condominium HOA that paid off all obligations and left cash for reserves.