First Mortgagee Approval for amendment changes

Started by JoK2 • 2 replies • 1471 views

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JoK2 (California)
Posts: 198

Posted:

Our CCR's in all their glory require the mortgage company to approve any amendment changes. So my question is this, at what point in the process should this be done, after the vote?

I ask because as I've stated in other posts, we aren't very positive that we can get the required 90%. What experiences has anyone had with this aspect of the process?
Thanks in advance!

TimB4 (Tennessee)
Posts: 21,059

Posted:

It should be done after the vote.

Additionally, the notices should that are sent to the lenders should be an opt out style.

Something along the lines of:

At a meeting of the membership held on mm/dd/yyyy, the membership, by a vote of xx to xx, approved adopting the following changes to our governing documents. Per xyz, mortgage company consent is also required. Lack of a reply will indicate consent. Written objections must be received by mm/dd/yyyy.

Obviously, have your attorney help you write it so it can stand up to any challenge.

CarolR11 (Colorado)
Posts: 2,563

Posted:

Our CC&Rs actually includes a clause like the one Tim suggests. Sort of says that if we don't hear from the lenders within 30 days, we assume that they approve the revisions.

With tim, do chaco with your attorney.

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