Re: Mortgage lenders and cohousing
From: Lyle Scheer (wonkomonkeyhouse.org)
Date: Mon, 27 Aug 2012 13:17:14 -0700 (PDT)
On 8/27/12 12:59 PM, Ann Zabaldo wrote:
> O this drives me crazy.  You have pending buyers for your cohousing community 
> and Chase is worried about "marketability?"   Really?  Am I confused?  Isn't 
> the definition of marketability people wanting a loan to buy a particular 
> home in a particular community -- it sort of strongly infers marketability of 
> the home and the community?  Isn't that what we call "demand?"
>
> This is one of those "Ate My Brain" situations.  I can't wrap my head around 
> it ...
>
Talked to my lender around this.... it's pretty simple actually.

While there is current demand... fish on the hook as it is, it really
lends no data into future demand or when the lender who needs to
foreclose can find a buyer.  In their world, marketability is about not
having specific things required of the buyer.

In my case, the underwriter was concerned about work requirements if any
were written up in web site documents or in HOA documents.  They were
concerned about the community garden and made sure that there were no
demands for any potential buyers to have to put work in on the garden.

Most definitely this underwriter had heard about cohousing and some of
the things we expect in cohousing and wanted to be sure there was
nothing in writing or policy that would *require* anything like this.

I think co-housing communities need to be very careful about their
documents and expectations versus requirements.

- Lyle



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