Your Co-op's loan fund is a “fixed” pool of money. Because these loans are low-interest, each time there is loss due to default, bankruptcy, or foreclosure, that “fixed” pool is reduced by that amount.

As listed owner of a property, you have an interest in that property. Your Co-op requires all persons who have an interest in the property to sign the participation application and loan agreement for the following reasons:

  1. to ensure that all property owners are informed;
  2. to ensure that the obligation will be paid if anything happens to the primary applicant
  3. to ensure continued viability of the loan pool.