non-judicial sale process for co-ops isn't "Foreclosure" at all, but
for convenience sake I will use the word "Foreclosure".
Co-ops are generally thought of as real estate, but legally they are
not real estate. You own shares of stock and you have a Proprietary
Lease. All of this sounds theoretical but the real-world
consequence is that your co-op can get foreclosed much, much FASTER
than any piece of land can be. This is because Co-ops are subject to
Non-Judicial Foreclosure. The court process greatly slows down the
foreclosure of land. With a co-op they do not need to take you to court
at all. The Lender will move quickly. You must move quickly, too.
Another result of this is that
you do not a have a Judge involved in the foreclosure. If you have a
dispute with the Lender, you may have to take the initiate and SUE THEM
in order to get the matter before a Judge. This is because they will
probably just proceed with a quick auction sale despite your protests.
If you have to sue them this shifts to you the burden of instituting
the court action. Things like having the summons served and
paying various court filing fees become your problem instead of theirs.
How an Attorney Can Help:
This is an emergency situation and you need to move quickly. Oftentimes
this means negotiating with the Lender AND preparing litigation papers
against them at the same time. The minimal amount of time involved
means that if a workout cannot be reached then the matter needs to get
before a Judge ASAP.
Real Estate Tax Foreclosures: