We closed a transaction last week on a condominium with a Homeowners Association (HOA) that was involved in litigation. The litigation had to do with some mold in a building that was not attached to our subject property’s building in the same complex.
In any case, if litigation does not involve the structural integrity of the subject property’s building; if it does not present health and safety issues; if it does not present serious marketability issues; and if it does not present an imminent financial threat to the stability of the HOA itself, we can often obtain Fannie Mae or Freddie Mac (conforming) financing.
Our lending sources look the other way, in regard to litigation, surprisingly often as long as we can provide all of the necessary paperwork that allows them to adequately assess risks.
Founder/Broker | JVM Lending
(855) 855-4491 | DRE# 01524255, NMLS# 335646