Quote:
Originally posted by ThetaxiUW
However, good news is is that they cannot pull their money out due to the mortgage. They are required to sign a document that guarantees the house for every 4 or 5 years. They just resigned it during the summer. So they cannot pull their money without finding a replacement guarantor. But its not like we are going to do something horrible or anything anways. I just want to know if this is legal what they are doing or not?
On another note, if there is no organization that protects greeks from living arrangments like this or creates standard guidelines for rules and regulations of greek houses, there sure as hell should be!
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In regards to guaranteeing the house - there have been situations where this has happened. In the blink of an eye, an error in judgement was made by the actives, which caused the pulling of the charter. The alumni were left PERSONALLY responsible for the mortgage balance. In certain instances, if the charter is in fact pulled, the mortgage company can have a clause in the note that requires the loan to be "called." In other words, whatever remaining balance remains, is due within 30 days.
Think about that from the alumni perspective. They may seem "overlordish" at times, but really, they have literally put their lives on the line for the future of your chapter. It's not something the alumni will take lightly, neither should you.
Case in point - an administrator at a local Moose Lodge here in Colorado guaranteed the lodge building. While the lodge didn't close, there was a lot of funds mismanagement, and as a result, the bank foreclosed on his house. He lost everything, and can't get a new house for another year or so as a result. Family of five from a 4 bed 3 bath house to a 2 bed one bath apartment.
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