- Find a Real Estate Professional
- Realtors®
- Mortgage Lenders
- Home Improvement Pros
- Other Real Estate Services
- Review an Agent, Lender or Pro
- Marketing on Zillow
- Real Estate Agent Advertising
- Join the Professional Directory
- Popular
- Real Estate Market Reports
- More
Answers (3)
- Michael Emery, "MikeEmery"
- Contributions:7298
We had a similar situation in Minneapolis involving a large development that had lawsuits pending regarding construction issues. It became very difficult to find banks to lend on the property with the cloud hanging over the development.
At the time, the homeowners association sought out several lenders that were willing to do loans, but with the then unresolved issue of whether home owners might be liable for some of the repairs, it made it difficult to sell properties in the development.
Fortunately, the issue was resolved but not without having homeowners pony up cash for a portion of repairs.
At the time, the homeowners association sought out several lenders that were willing to do loans, but with the then unresolved issue of whether home owners might be liable for some of the repairs, it made it difficult to sell properties in the development.
Fortunately, the issue was resolved but not without having homeowners pony up cash for a portion of repairs.
- Larry Morris CMPS, "Oregon Mortgages"
- Contributions:45
I have worked with several borrowers with these situations. A lot depends on what is showing up on Title and most importantly, where the HOA is in the litigation process?
But generally speaking, the judge needs to sign the paperwork to have the litigation resolved before most lenders will take this. The issue isn't so much with he unit that you are looking at, but in what could potentially be charged to you if teh HOA is unsuccessful in getting the work completed. A "Special Assessment" could be huge and force you into default on your loan. Banks don't like the unknown...
But generally speaking, the judge needs to sign the paperwork to have the litigation resolved before most lenders will take this. The issue isn't so much with he unit that you are looking at, but in what could potentially be charged to you if teh HOA is unsuccessful in getting the work completed. A "Special Assessment" could be huge and force you into default on your loan. Banks don't like the unknown...
- Dave Skow, "daveskow"
- Contributions:1106
yes it will stop most lenders from proceeding .....you should ask your loan officer to check public records to find out if any transactions (purchase or refi) have happened in the complex since the litigation started ...find out who those lenders were and check with them to see if they are aware and OK in doing lioans in the complex
Will a pending construction defect lawsuit prevent condo owners from refinacing?
Stating a discriminatory preference in an advertisement for housing is illegal. If you think this content is discriminatory or otherwise inappropriate and feel it should be removed from Zillow, please let us know by completing the information above.
We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.