How to get financing on a property in a Corporation HOA?

[Anthony Barbato]

Hello,

I want to ask the community how I can get financing for this deal in order to close the sale.

I currently have a listing at 339 W Chanslor Ave in Richmond CA. This neighborhood is set up as a corporation, which means that buyers cannot get a mortgage from a typical lender because the only document that changes hands is a stock certificate, not the title or the deed. The lender can't put a deed of trust on the property because the property remains in possession of the mutual homes corporation. By paying the asking price, the buyer will receive a stock certificate that permits them to live in the unit that they paid for. The property is limited use because it does not belong to the inhabitant. It is maintained using the HOA fees, and all renovations have to be approved by the corporation board first.

The offer on the property has to be all cash, which is deflecting all potential buyers because they do not have the $170k in cash. 

There is one exception, The Atchison Village Credit Union, which is a lender that exists to help make the neighborhood more affordable. They will lend up to $65k in the form of a personal loan at 12% annual interest.

I want to learn from this group how to get the financing for a buyer so that we can get this deal financed and be able to close. I have heard that it may be possible to take out the personal loan for $65k, then take out another loan from a hard money lender or a private investor for the rest of the amount in return for the possession of the stock certificate as collateral. Here are the numbers of the potential deal:

$170k sell price value

-$65k personal loan from Atchison Village Credit Union unsecured by the stock certificate

-$105k 61% LTV loan from private investor that is secured by the stock certificate

Any feedback is appreciated.

Link to the MLS listing: https://maxebrdi.paragonrels.com/publink/default.aspx?GUID=c9c52ad1-8a62-4aa3-b3d6-b032ad83c945&Report=Yes