Lender won't fund loan due to HOA lawsuitHi all,Our conforming loan for a condo in Southern California was just about to be going for docs and close escrow when the lender backed out. There is a civil lawsuit against the HOA for defamation of all things and the lender won't fund loan. They are now asking for the attorney of the HOA in this lawsuit to write a letter explaining the maximum exposure in this lawsuit. Is this common? To me the lawsuit seems arbitrary and has nothing to do with structure or living conditions. But then I did a search and found out that no other homes have been closed in a community of 300 for 5 months. What are my options as a seller? August 25 2014 - Aliso Viejo00YesReport a ProblemProblemSelect oneOffensive contentIrrelevant contentSpam (pure self-promotion)OtherDetailsYour emailPlease enter a valid email address.Submit CancelContent flaggedWe will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.We're sorry. This service is temporarily unavailable. Please come back later and try again.