December 2004 Memo To: From: Re: Shareholders/Borrowers, Mortgage Brokers and Lending Banks MGRE Refinance Department Proposed First Mortgages, Refinance of Current Loan Amounts Line of Credit/Home Equity Loans, Refinance with additional Cash-out at Lincoln Spencer Apartments Inc. 140 West 69th Street, NY NY Due to the conducive lending environment, many shareholders are considering various financing options. Please be advised that any of the transactions set forth below require the prior approval of the Board of Directors of your Cooperative. 1. Shortening the term of your loan (i.e. from a 30 year term to a 15 year term); 2. Refinancing your current loan at a lower interest rate and reducing your monthly payments; 3. Refinancing your current loan amount at a lower interest rate and borrowing additional money (regardless of whether your monthly payments are decreasing); 4. Taking out a Home Equity Line of Credit or Equity Source Account to be drawn upon as needed or to pay off existing credit card debt or used for renovation; or 5. Taking out a first mortgage or Line of Credit on the apartment (you currently have no mortgage or Line of Credit in place). Please do not schedule any closing with your lender until you have contacted this office to review the necessary Board approval procedures. Please do not contact Board members directly or ask them to sign Recognition Agreements. All documents, requests, and questions must be processed through this office. The approval process requires approximately three (3) weeks for completion. It is your responsibility to provide to your lender or mortgage broker the latest Financial Statements of the Cooperative Corporation. Please be advised that these Statements are mailed to all shareholders annually. If you have not retained these items with your records, the cost for replacement is $15 for one year and $25 for 2 years by check made payable to MGRE CO LLC and mailed to our Lake Success office. Financial Statements cannot be faxed, and we cannot billed your account. In addition, we do not accept credit. These documents cannot be mailed until payment is received.
REFINANCE PROCEDURES 1. Check in the amount of $150 made payable to MGRE CO LLC; 2. The Building Questionnaire you may have already received from your lender (please provide the name and fax number of your bank contact for return or a pre-addressed stamped envelope). Please provide our name and phone number and fax number to the appraiser who contacts you. 3. The three (3) original (1973 AZTECH Form) Recognition Agreements, signed by your lender and to be signed by you. Please include a pre-addressed, stamped envelope for their return to you. 4. TWO (2) photocopies of the loan commitment sent to you by the Bank. The Commitment Letter must include your proposed loan amount, interest rate and monthly payments; 5. TWO (2) photocopies of one of your recent mortgage bills showing your outstanding loan amount, interest rate and monthly payment; and 6. TWO (2) photocopies of the Refinance Worksheet Attached herewith. Should your lender require a paid maintenance letter please contact your bookkeeper directly (please ask the Receptionist to connect you to the bookkeeper for your particular building). Please note you must be current through the current month to receive such letter. Please be advised that you must be current, through the month of closing, in all of your financial obligations to the Cooperative Corporation before we can issue a paid maintenance letter to your lender. Please contact Teri Korten at 516-944-5000 ext. 250. Please leave a voice mail message with your name and apartment number and the contact person and fax number of your lender. Should your lender require a copy of the building s insurance policy, please contact Barbara Fahlikman at ext. 246, leave a voice mail with your name, building address and provide your lender s contact person and fax number. Please advise your lender that we do not name lenders or borrowers on the building s insurance policies.
Financial Statements/Attorney General Disclosure Statements/Amendments It your responsibility to provide to your lender or mortgage broker copies of the latest financial statements of the Cooperative (mailed annually to you by this office) and the most recent Attorney General Disclosure Statements (also known as the latest Amendment to the Offering Plan). Please note that if you have not retained these items with your records, the cost for replacement is $15 per instrument made payable to MGRE CO LLC. Please send your check for payment, together with a letter explaining exactly what items are needed and where to forward same. Please be advised we cannot bill your maintenance account and we do not accept credit card payments. Unfortunately, documents cannot be faxed.
Please complete this form and include (2) photocopies with your package. REFINANCE WORK SHEET Names of all Owners of the Apartment : Your Street Address and Your Apartment Number: Your Phone Number: CURRENT LOAN: Name of Your Current Lending Bank (if applicable): Your Current Loan Amount (if applicable): Your Current Interest Rate (if applicable): Your Current Monthly Payments (if applicable): The Term of Your Current Loan (15 years or 30 years please circle) PROPOSED NEW LOAN: Name of Your Proposed New Bank: Name, Phone Number and Fax Number for Bank Contact or Mortgage Broker: Your Proposed Loan Amount: Your Proposed Interest Rate: Your Proposed Monthly Payments:
Please circle the Type of Loan You are Considering: 1. Shortening the term of my current loan (i.e. from 30 years to 15 year terms); 2. Refinancing my current loan amount at a lower interest rate and reducing my monthly payments; 3. Refinancing your current loan amount at a lower interest rate and borrowing additional moneys (i.e. to be used to pay-off credit card debt); 4. Taking out a Home Equity Line of Credit or Equity Source Account to be drawn upon as needed or to pay off existing credit card debt; or 5. Taking out a first mortgage on the apartment (you currently have no mortgage or Line of Credit outstanding); If you have circled Item #3 - #5 above please state below the use for the NEW fund