Seller Financing - Posted by Michael (NJ)

Posted by Nate on March 07, 2001 at 11:57:10:

Just because something is not real property does not mean you cannot use it as security for a loan.

Your car is not real property, but you can get a car loan. And if you don’t pay, they will take your car!

You can also get loans secured by all kinds of personal property (boats, trailers, etc.) as well as by business equipment, stocks, bonds, interests in partnerships, etc. None of those are real property.

Just make sure the lawyer who draws up your paperwork is familiar with co-ops in particular, and is not just a real estate lawyer with no specialty in co-ops. Other than that, I don’t see any major issue.


Seller Financing - Posted by Michael (NJ)

Posted by Michael (NJ) on March 07, 2001 at 07:19:15:

Hi everyone,

I’m in the process of considering seller financing for the sale of my Co-Op. I will be receiving 20% down and take back a 5 yr note. Is there anything I could do to feel more secure about this tranaction other than the obvious. Since NJ doesn’t really recognize Co-Op’s as real property, how does one feel more at ease with such a transaction?