Prospective buyers beware

My wife and I made an offer on an apartment in this building at the end of May, it was accepted, and we got a contract signed in early July. We agreed to put 35% down and were approved by both Chase and Wells Fargo to finance the rest. We submitted our application and board package in August. After that, things went quickly downhill. Over the next several months, we were asked to provide... [more]

My wife and I made an offer on an apartment in this building at the end of May, it was accepted, and we got a contract signed in early July. We agreed to put 35% down and were approved by both Chase and Wells Fargo to finance the rest. We submitted our application and board package in August. After that, things went quickly downhill. Over the next several months, we were asked to provide additional information multiple times, including more detailed financials, letters from our accountant, etc. We resubmitted our full board package THREE TIMES at the request of the board president after we had submitted the initial package. We obliged, as we thought this was part of the process of jumping through hoops for a co-op board in NYC. At the end of October, we were rejected by the board. We heard different things from different parties. One side said that the board thought we were going to change the socio-economic makeup of the building. Note, we're not Caucasian. Another said our offer price was too low. Note, this apt, a two unit combo, was a complete gut renovation and required converting one of the kitchens into a bathroom. One of them asked us to put a full year of maintenance in escrow and increase our down payment to 50%. We didn't think the apartment, building, or neighborhood warranted that and decided to walk away as our contract and financing had expired at this point. We understand that legally a co-op board has full discretion as to who they accept and reject, and do not have to disclose the reasoning behind their decision. But why they made us go through this ordeal for so long when they were going to reject us, conceivably, on our ethnicity and/or offer price anyway is beyond us. We're writing this as a warning to prospective buyers – this is a normal building and a good neighborhood, but the board is unreasonable and inconsiderate, and possibly racist. Even if you get approved, there's a risk that any renovations and changes to the apartment that require board approval would also be incredibly painstaking with this bunch. Proceed with caution. [less]