Maria Rodriguez is applying for a mortgage to purchase a co-op apartment in Queens. Her lender explains that co-op financing differs from condominium financing in New York. Which statement about co-op financing is correct?
Correct Answer
B) Co-op loans are personal loans secured by the stock shares and proprietary lease
In New York, co-op ownership involves personal property (corporate shares) rather than real property. Therefore, co-op loans are personal loans secured by the stock shares in the cooperative corporation and the proprietary lease, not by real estate mortgages.
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