Why Co-ops Ask Tenants to Pay Forward
How to Prepare and How to Respond
For first-time buyers, the situation is generally far more challenging. One obvious option is to go begging. In some cases, a well-heeled relative—usually a parent who is invested in ensuring their child’s deal doesn’t fall through—is able and willing to hand over the required money needed to satisfy a board’s escrow request.
For buyers without a willing and wealthy relative to lean on, however, the options can be limited, especially since borrowing is bound to be difficult at this point in a purchase and may be impossible for many first-time buyers. As a rule of thumb, the only way to be prepared is to ensure you have saved as much as possible prior to going on the market. Working with an experienced agent can also help, since they may be able to steer you clear of co-op boards that have already gained a reputation for demanding that new tenants pay their fees forward.