Cohousing-L Mailing List: Re: Resale of units (right of first refusal)

[Jim Snyder-Grant (jimsg]

Rob Sandelin asked about the right of first refusal & commercial banks 
willingness to accept these limits.

This worked fine for New View's (Acton MA) condo docs, and we were able 
to get FNMA approval. We dealt with lender concerns by dropping the 
right in the case of a foreclosure. Our right of first refusal, even 
when we can use it, only allows us to match a bona fide price presented 
by a seller: we can't interfere with their ability to get top dollar. 
That presumably helps calm down the banks as well.

We dealt with our concerns of being potentially blindsided by a 
foreclosure by requiring the banks to notify us before foreclosing, and 
allowing the right to 'cure defects', e.g., the association could come 
up with the money owed the bank if it could work something out with the 
homeowner that was mutually agreeable, such as selling the house & 
letting the association get paid back from the sale...(and in that case 
the right of first refusal WOULD apply if we wanted to use it).

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jimsg [at] hotmail.com
Jim Snyder-Grant
(please excuse mandatory ad appended by my email provider)


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