Cohousing-L Mailing List: Re: Fannie Mae

[Sharon Villines (sharon]

On Aug 4, 2010, at 11:46 AM, Michael Barrett wrote:

> So I tentatively surmise:
> If an offer is received from a buyer who apparently has no interest in
> supporting and participating in the community, then the right of first
> refusal allows the HOA to match that offer and buy the property?
> Is that so?

Yes.

> And do so repeatedly if the unwanted buyer ups their offer?

The time period would start with a contract between the buyer and  
seller so the seller would have accepted the price. Then the HOA has  
the right to match that price.

> If so then the mortgage-offering-bank will want to be sure the HOA  
> is a good
> risk. Is it that banks like named individuals with good stable jobs  
> and
> excellent credit rather than paper organizations?

The HOA would be the official buyer and either use it's own funds to  
buy or apply for a mortgage as an HOA. In the one instance in which  
some residents would have tried to finance a purchase, they would have  
had to loan or give the down payment to the HOA or convince the HOA to  
use its own funds to purchase.

We have some very fiscally conservative members so it is unlikely that  
any of these things would happen in 3 days but in case of emergency,  
one never knows. What we really need to do is to investigate the  
possibilities now so we are ready if this occurs again, but......

Sharon
----
Sharon Villines
Takoma Village Cohousing, Washington DC
http://www.takomavillage.org