March 22, 2010


Comments

 
 
 
  • The credit union may be on the hook for this home for decades. If this borrower defaults, the credit union will have to finance the new owner because they won't be able to get financed anywhere else. If the member wants to sell it, the credit union may have to finance the new owner for the same reason. The only way out is for the borrower to pay it off or for someone to buy it for cash.
    Anonymous
     
     
     
  • Unfortunately, Comment #1 is all too true, Conforming conventional mortgages are just that, very conforming to a closely defined set of rules. In light of current mortgage industry troubles, it isn't too surprising that nobody will step out and take a seemingly moderate risk with a residence that is constructed in an unconventional manner. Most lenders have given up on requests for geodesic domes, rammed earth and straw bale homes, not to mention a home made of recycled tires. Today, credit unions are almost alone in the position to be able to help their members with a desire for an unusual home. As long as they are prudent and acknowledge that this type of mortgage will be in their portfolio indefinitely, they have the ability to make a genuine difference. Great job, Red Rocks Credit Union!
    John Davies
     
     
     
 
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