Answers (3)
- Rudi Hofmann, "LUXURY HOME LOANS CA"
- Contributions:7435
If your HOA was previously approved, there are several portfolio lenders that will lend on condos in litigation. Because they do not require a condo cert. Reason being, most litigation is about petty stuff.
Check with some of the larger brokers or correspondent lenders in your area. .... Happy funding, Rudi
Check with some of the larger brokers or correspondent lenders in your area. .... Happy funding, Rudi
- drjody
- Contributions:2
Thanks Patrick for that brutal truth. Have be preparing for the past several weeks to sell my condo. Just heard this info from the neighbor an hour ago. With your confirmation, well, guess I'll have to......? Figure something else out.
- Patrick Nolan, "Bucks County Banker"
- Contributions:282
True. One of the disqualifying factors for Fannie Mae / Freddie Mac condo project approval is whether there is litigation pending against the condominium association.
Have personally worked several loans with Fannie Mae's condominium project approval office in New York where the detailed explanation of the factors behind the litigation would lead you to believe on a common sense basis that they would approve the project the answer was "No".
Fannie / Freddie are risk adverse at this point in time and it almost doesn't matter what the explanation is or validity of the litigation. If the answer on a condominium questionnaire to the question whether there is is pending litigation is, "Yes", you don't have a condominium project that can be approved for conforming financing.
Have personally worked several loans with Fannie Mae's condominium project approval office in New York where the detailed explanation of the factors behind the litigation would lead you to believe on a common sense basis that they would approve the project the answer was "No".
Fannie / Freddie are risk adverse at this point in time and it almost doesn't matter what the explanation is or validity of the litigation. If the answer on a condominium questionnaire to the question whether there is is pending litigation is, "Yes", you don't have a condominium project that can be approved for conforming financing.
class action causes mortgage company not to loan money to condo buyers
A neigbhor has a class action suit against our condo board members. A mortage company told my neighbor that they wouldn't loan any money to them to refinance or to anyone interested in buying into our condo community because of this class action suit. Is this truth or fiction? Where would I go to get the facts on this?
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