"That means they have to convert their share loans into mortgage loans on the unit."

"A lender doesn't want to make a share loan in a building that is financially unstable," he said.

Owners of co-ops that become condos must also convert the individual share loans on their apartments to conventional mortgages, he said.

Then the estate would automatically see the value of the shares raised to the then-current market value, and the share loan could be repaid.

Moreover, they said, the indication of unpaid taxes on the city's records would make it difficult for buyers to get share loans.

But buyers of co-ops generally don't get title insurance, even when they take out share loans (the equivalent of mortgages).

The requirements of many lenders, however, go beyond having only the filed UCC-1 form as security for a share loan.

"You are going to get scrutiny not only by potential buyers but from share loan and blanket loan lenders."

We have no underlying mortgage on the building and only two of the co-op owners have share loans.

He said that in most such situations, a main impediment is the need for the approval of all lenders who hold share loans.