|RE: Membership control in resales = co-op ownership||<– Date –> <– Thread –>|
|From: Rob Sandelin (Exchange) (RobsanExchange.MICROSOFT.com)|
|Date: Thu, 28 Dec 1995 11:02:35 -0600|
One thing I would add to David Mandells post, is the reason banks, at least in our area, do not fund coops, is there is nothing really substanative to foreclose on. In a coop, the organization owns the unit, not the individual, the individual owns shares in the organization, and thus the banks are not really interested in Shares as collatoral on loans as opposed to real titles to real units. There are now some new regulations that virtually forbid FNMA to buy coop loans and thus any coop loan is held by the bank, and can't be resold. The federal regulators have severely limited the amount of bank held loans as one of the "reforms" in the banking industry after the SL debacle. I was told by a bank V.P loan officer that coops are not lendable anymore, at least not in the competitive market. Winslow, which is a coop, was able to convince the senior V.P. of a local credit union to fund their project with a bank held loan. The senior V.P. later got canned, and there was some confusion for awhile about their loan although they eventually got it straightened out. So to buy a unit at Winslow their is one bank which you can get a mortgage from. This has made a couple of small problems for reselling units, although the interest rates paid are not too far out of line with competitive loan rates. There is another group in our area called Songaia, which is developing 12 units as a coop, but have not figured out a funding mechanism yet. Commercial banks won't touch them, so they are working out some kind of internal funding mechanism where a couple folks pay cash up front for building their units, then using those units somehow as proof and collatoral. They are trying to pull this together now and as I get the details of their success or failure I'll add it to the list. One way to control membership is to control sales of units by keeping an active mailing list, producing a newsletter, doing outreach, creating a waiting list process which includes some sort of membership ritual, such as waiting list members have to attend 4 functions a year. People are not in any way legally bound by this, but why wouldn't they sell to someone on the list? So even if you have no units for sale, put out some energy to promote yourself just the same. That way, when life strikes and people move out, you have a waiting group of folks in the wings ready to buy a unit. So far this is how all the built homes sold so far (2) have gone at Sharingwood. Rob Sandelin Sharingwood
Re: Membership control in resales = co-op ownership David L. Mandel, December 27 1995
- RE: Membership control in resales = co-op ownership Rob Sandelin (Exchange), December 28 1995
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