UCC Article 9 "Foreclosure" Sales
Our firm has extensive experience representing co-op boards in actions against shareholders who fail to pay their maintenance payments. Co-op boards have several options available to them when seeking to resolve unpaid arrears but a popular option is to cancel the shares through a UCC Article 9 "foreclosure" sale and then resell these shares through an auction.
Before moving forward with a UCC Article 9 "foreclosure" sale, the co-op must decide certain matters like when to evict the shareholder if they are still in the apartment; whether to rent or sell once the delinquent shareholder is gone; and whether it would be in the best interest of the co-op to repurchase the shares and apartment, or to rent or sell the apartment. Next, notices must be sent to multiple people and entities including the shareholders, banks, and lien holders in order to give the interested parties notice of the proceedings. Sometimes notice must be given to the general public informing any interested parties and the public what the co-op is doing and how any interested parties can respond. These procedures must strictly comply with all statutory requirements. To learn more about UCC Article 9 "foreclosure" sales, check out our blog post by clicking HERE.
The process requires the co-op board to make tough decisions and have a knowledgeable and practiced team in place to assist with and navigate what can be a challenging, long, and complex process. James G. Dibbini & Associates, P.C. is here to provide practical advice, a candid assessment of your options, and recommendations on how to proceed.
If your co-op corporation, or the co-op you manage, is experiencing a maintenance arrears problem, or, if you are a shareholder facing eviction, contact James G. Dibbini & Associates, P.C. for a consultation. We can provide an easy to understand assessment of your situation with concrete recommendations on how to move forward based on years of proven success in all things property related.
Before moving forward with a UCC Article 9 "foreclosure" sale, the co-op must decide certain matters like when to evict the shareholder if they are still in the apartment; whether to rent or sell once the delinquent shareholder is gone; and whether it would be in the best interest of the co-op to repurchase the shares and apartment, or to rent or sell the apartment. Next, notices must be sent to multiple people and entities including the shareholders, banks, and lien holders in order to give the interested parties notice of the proceedings. Sometimes notice must be given to the general public informing any interested parties and the public what the co-op is doing and how any interested parties can respond. These procedures must strictly comply with all statutory requirements. To learn more about UCC Article 9 "foreclosure" sales, check out our blog post by clicking HERE.
The process requires the co-op board to make tough decisions and have a knowledgeable and practiced team in place to assist with and navigate what can be a challenging, long, and complex process. James G. Dibbini & Associates, P.C. is here to provide practical advice, a candid assessment of your options, and recommendations on how to proceed.
If your co-op corporation, or the co-op you manage, is experiencing a maintenance arrears problem, or, if you are a shareholder facing eviction, contact James G. Dibbini & Associates, P.C. for a consultation. We can provide an easy to understand assessment of your situation with concrete recommendations on how to move forward based on years of proven success in all things property related.
