Co-op as secured debt?

[happy_ira]

Hi all. I own my apartment in NYC which has two mortgages on it. Both these mortgages, I am listing on Sched D (Creditors Holding Secured Claims) and on Form 22A (Line 42 for deductions for Secured Debt).

My question is: What underlying Co-Op itself? I "own" shares in the co-op and I pay a maintenance fee every month. If I stop paying for some reaon, the co-op can come after me and throw me out of the building because I have to pay my monthly share. Therefore, should my co-op also be listed on Sched D and should I deduct the monthly maintenance?

I believe the answer is Yes since even if I had $0 in mortgage (e.g., I bought the co-op for cash), I still owe the monthly maintenance fee ($1,000).

Any thoughts? I am certain this must come up all the time in NYC??

[happy_ira]

Anyone with any thoughts on this? Does it get factored into Line 42 on the Means Test? Thanks again.

[tunskit]

I have no idea, but giving you a "bump".

[Dollar Bill]

How is the co-op a secured creditor, or why do you feel they are?

Are they listed on any title/deed or the like?

I'm really not too familiar with the term; however, it sounds like what we have here on houses in Los Angeles.....a monthly association dues.

[happy_ira]

How is the co-op a secured creditor, or why do you feel they are? Are they listed on any title/deed or the like?

I did some more digging over the past couple of days and found some info that might be helpful to others as well. The cooperative in which I own shares, holds the proprietary lease on all the units in the bldg (this is pretty much the way all co-ops are structured in NYC, but not necessarily a condominium which would be diff't since with condos you "own" the apt, but with a co=op you merely own shares in the bldg). If I were to stop paying my monthly maintenance, the co-op would legally be able to evict me (standard court motions in NYC) and then they would sell my secured unit. With the proceeds, they would then pay off whatever maintenance I owed, with the remaining (if any) going to me.

Similar to a mortgage on secured property--if you did not pay your loan, the mortgage company who holds the secured debt, could sell your house and pay off the mortgage. If anything were leftover, they'd give it to the mortgagee.

it sounds like what we have here on houses in Los Angeles.....a monthly association dues.

Could the LA association have you evicted? If yes, it's the same. If not, hmmmm.

[Dollar Bill]

No the LA Association cannot have you evicted.

YOu have a very interesting question with this co-op situation. Someone will post an answer for you soon. It's very sticky in terms of where it belongs on your petition.