CAI-NJ Sept.2017(1)

51 / 88

51
S E P T E M B E R , 2 0 1 7
908-595-0050
NEW JERSEY HEADQUARTERS
682 Hwy 202/206
Bridgewater, NJ 08807
The Falcon Group prides itself on having a strong,
talented team of five (5) licensed Reserve Specialists
(RS). Since 1997, we have provided over 2,000
Reserve Studies to communities and building owners.
We want to be your partner for success to protect your
assets through an accurate, pro-active and realistic
reserve funding plan and with your next capital planning
& improvement project. Contact us today for more
information.
ACCURATE, REALISTIC FUNDING PLANS
OVER 2,000 RESERVE ANALYSES PERFORMED
nearly as much “bad debt” as condos
and generally collect a significantly
higher portion of arrears lessening the
burden on other shareholders.
Furthermore, in a condo the collec-
tions process, in particular foreclosure,
can drag on for a significant period of
time (in some cases years) resulting in
delinquent owners owing many tens, if
not hundreds, of thousands of dollars.
Co-ops do not file “foreclosures” in the
same sense as a condo. Instead, the
co-op’s attorney sends the shareholder
(and lender, if applicable) in arrears
a Notice to Cure (compliant with the
Fair Debt Collections Practices act and
the governing documents) giving the
shareholder a period of time to cure.
In the event that the shareholder does
not cure the arrears, the shareholder
is served with a notice to terminate,
indicating that in a period of time the
shareholder’s interest in the stock and
lease will terminate (in many cases
10 days). Upon the expiration of the
10 day period, and assuming the
shareholder has not signed over the
stock and lease to the co-op, the usual
practice is to file a law division action
for, among other things, termination
of the shareholder’s interest in stock
and lease and ejectment from the
apartment.
Such “co-op” ejectment actions
may result in a judgment of, among
other things, possession within 4 to 6
months. Upon receipt of the judgment,
the co-op markets and sells the unit,
and distributes the proceeds first to the
co-op to satisfy arrears, and, if autho-
rized by the governing documents,
attorney fees and costs incurred. The
remaining funds are then distributed
to others, such as the lender and
owner, as their interests may lie. An
additional delay of 1 to 2 months
may be required if the occupants of
the apartment must be ejected and
locked out by the sheriff. Therefore, a
CONT I NU E S ON PAGE 52
© iStockphoto.com