|Internal home loan assistance||<– Date –> <– Thread –>|
|From: Joani Blank (jeblankic.org)|
|Date: Sun, 29 Nov 1998 22:55:36 -0600|
At Doyle Street we have had at least one case where one household loaned money to another whose house appraisal came in significantly higher than expected. Therefore, 20% down payment was required instead of 10%. The lending household made the loan at the time of original purchase so this it was not at all a risky loan. It was a formal second mortgage with the papers drawn up by the title company, and a second deed of trust was issued to the lender. The terms of repayment and the interest arrangements were agreed upon by the two parties. I really like the idea of a community loan fund within a cohousing community, but I think the paperwork it would require and the questionable legality of it in some states make it a pretty iffy proposition. Also, someone has to "manage" any money that is in the fund but not loaned out at any moment. A potential disadvantage of the individual lending scheme might be awkwardness if it were known that the X family had loaned to the Y family, but chose not to lend the Z family. Keeing secrets isn't a swell idea either, so maybe there could be some kind of anonymous middle man or woman (someone neutral and not a community member) to protect the anonymity of both (or all) the parties. Joani Blank Doyle St., and Old Oakland CoHousings (both in N. California, of course)
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