Cohousing-L Mailing List: Re: bank financing

[Jim Snyder-Grant (jimsg]

Toni Smith asked about coho mortgages that were resold.

New View (Acton MA) was organized as a condo & many of our mortgages 
were resold on the secondary market. As we were developing condo docs, 
we paid attention to FNMA requirements, which is the main requirement 
for easy resale on the secondary market. Our construction loan bank 
(concord coop bank) was the provider for most of the New View 
households, and they were going to hold the mortages themselves, so 
initially we did not go through the formal FNMA certification process. 
Later, some households decided to seek out slightly better rates by 
going to mortgage brokers, and then we finished up getting approval.

The only possibly controversial parts of our docs were as follows:

-Right of first refusal (condo association can match the price & other 
terms of a potential sale, as long as we are not doing this to 
discriminate against any 'protected' categories of people).
-Decisions by consensus with a fallback to voting
-Right to cure defaults (banks have to notify condo board well before 
any foreclosure & give us a chance to intervene)


I can provide more info if needed.

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jimsg [at] hotmail.com
Jim Snyder-Grant


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