The
Woodlands "Take
Back Our Community" Association
PROPOSED DISTRESSED MEMBER FUND Under Construction
We
are all subject to the vagaries of life. The unexpected, often
unexplainable, happenings that change our circumstances...often for the
worse: We lose a job, illness strikes when we have inadequate cash or
insurance to cover us; our car "dies" or some other major expense "hits
us out of the blue". These things can affect anyone, any time, and
without warning. Unfortunately, in todays world, wealth is becoming
"concentrated
at the top", our buying power is decreasing, our wages are going
down when
that buying power and inflation are accounted for, our debt is already
high...so that many of us have little or no ability to withstand these
financial nightmares. "Life" has caused many
of us to have depleted our savings, maxed out credit cards and used up
our personal sources of short-term cash advance (our local "friends
& family" free loan source, if you know what we mean).
The above scenarios are a problem for anyone. But, as
homeowners in a condominium society, we're worse off than the average
homeowner. That "average Joe" won't lose the right to park a car in
front of his home, lose the right to use the local pool or tennis
court, lose the right to attend or speak up a town meetings, or lose
the right to vote because he is behind on debts. It's unlikely that a
small debt can explode into one (from fines on top of fines) that is so
large that losing his house is a possibility. ALL of that is possible
as an HOA (Homeowners Association) or condominium owner. It is hard to
imagine, but HOA homeowners have lost their homes, around the country,
from a situation that started out with them owing a few hundred dollars
to their HOA...followed by their "trustees" on their Board showed their
true colors...as vultures.
Yes,
if this happens to you, you might be able to use a "payday loan". But, if you've ever been
forced to use the money source, and failed to repay on time, you
already know that you can end up in an ever-increasing debt situation,
that is difficult to get over. No, you won't get your legs broken for
missing payments. But, other than that, the payday lender can be as
bad, or worse, than black market, back-alley loan shark.
As
present or past HOA Board members, we understand the obligation to keep
the HOA funded for maintenance & management. But, we also feel that
there are ways to work with our distressed neighbors, without becoming
monsters. To
provide an affordable alternative for our friends & neighbors,
we are
considering starting a distress fund, also known as a "Free Loan
Society". This will not have the ability to help with thousands of
dollars worth of debts. It won't loan you money if there is no
conceivable way for you to repay a loan. But, for transient
financial emergencies...those cases of: "If only I had a month of
'breathing room' "...we hope to be able to provide up to 2-3 months
of "condo fees" to owners who need help getting over that financial
"hump".
We have to work out the details, solidify the means to ensure
that the loans are repaid and figure out the best way to accumulate the
funds that can be lent out. But, this idea is nothing new. Free Loan
Societies, though not well-known, have been around for hundreds of
years. Please keep checking back here for news of our progress toward
accomplishing this option for those who need a little "boost up".
The
goal of this effort is to provide those loans with a repayment perido
of up to a year, and YES, there would be ABSOLUTELY
NO INTEREST CHARGES...only a $35-50 initial processing,
paperwor & filing fee...a flat fee regardless of the size of
the loan or length of the term for repayment, as long as the loan
payments made on time.
We will need volunteers to be part of the approval committee,
but the bookkeeping for the payments can be virtually automatic. And,
there are sources of free advice for this endeavor, from those who
already run such societies. Are you interested in helping out with a
few hours of your time each month? Or, can you dig
deep for $25, $50 or even $100 to help "seed" this loan fund? If so,
PLEASE contact
us if you can help with this valiant effort to support your
neighbors who are experiencing temporary financial distress. Thanks!