Re: Fannie Mae
From: Sharon Villines (sharonsharonvillines.com)
Date: Wed, 4 Aug 2010 12:21:57 -0700 (PDT)
(I forgot to hit send on this so it maybe out of the flow of conversation)

On Aug 4, 2010, at 10:11 AM, Michael Barrett wrote:

This may be obvious (to all except me) but can someone please explain why
lenders object to the right of first refusal.

They believe it limits their ability to foreclose and sell the unit. Even if it is a 3 day window, they don't like it. I think it maybe that they have a blanket rule rather than actually looking at the actual length of time and conditions.

 how right of first refusal works.

Right of first refusal means that no one can purchase until the entity with right of first refusal has refused to purchase.

There are many different conditions set by contract but in our case, the seller must notify the Homeowners Association (HOA) of their intent to sell. The HOA has 45 days in which it can purchase the unit. If the seller finds a buyer after those 45 days, we still have three days to buy the unit at the contracted price.

In our case, we have waived the 45 day period when a seller has found a buyer before they expired. And could probably not get ourselves together to use the 3 days. The reason for the 3 days in addition to the 45 days is that the HOA might have wanted to buy at a certain price that the seller refused, but when a real contract sets a price, the HOA can then exercise its right to buy at that price.

Then the issue arises of discrimination. There are legally protected classes that I'm not sure about, but the common basis used for charges of discrimination are against minorities and gays and lesbians. Since we have all of those included in our community already, it would be foolish to charge discrimination. It would cost everyone money and be unlikely to produce anything for anyone. We even had a lawyer for the ACLU here so she would certainly have taken our case. (She died of cancer two years ago.)

Sharon
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Sharon Villines
Wen the heat index is 110, walk fast to get out of the sun or walk slowly to avoid falling over.






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