Financing in Los Angeles>Question Details

chenthomas22, Home Buyer in San Diego, CA

Anyone know of a lender who can finance on a condo with an HOA in litigation?

Asked by chenthomas22, San Diego, CA Wed Mar 6, 2013

It is HOA sue unit owner for past monthly due.

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6
Gregorio Denny’s answer
Here are my guidelines fro condos in litigation. If you meet them, feel free to contact me.

Condo or PUD projects involving pending litigation may be considered eligible providing all of the following requirements  are met:

· Condo project must have a formal Home Owner Association.  Small 2­4 condo projects without a formal HOA with  known pending litigation are not eligible for financing.
· Project may not be located in Florida regardless if subject’s location is an eligible county
· Project must meet all other FNMA project eligibility criteria
· Full appraisal report is required. 
o Reduced appraisals or PIW is not permitted regardless of DU findings. 
o Appraiser may not indicate that marketability issue are present as a result of the litigation issues
· Prior to UW loan approval being issued, acceptable documentation must be provided and reviewed by UW prior to docs to determine: 
o Pending litigation is limited only to minor matters and: 
o Litigation has no impact on the safety, structural soundness, habitability, or functional use of the project. 
o The following are defined to be minor matters: 
ß non­monetary litigation involving neighbor disputes or rights of quiet enjoyment or 
ß litigation for which the claimed amount is known, the insurance carrier has agreed to provide the defense, and the  amount is covered by the association’s insurance; or 
ß The homeowners’ association is named as the plaintiff in a foreclosure action, or as a plaintiff in an action for past  due homeowners’ association dues.
· Operation’s Manager 2 nd signature is required in addition to UW approval
1 vote Thank Flag Link Wed Mar 6, 2013
Gregorio gave a great comprehensive answer, thumbs to him!
0 votes Thank Flag Link Sun Mar 17, 2013
We can do them in most cases unless the litigation involves major structural issues.
0 votes Thank Flag Link Thu Mar 7, 2013
Yes... it depends on what the litigation is all about... email kent@nafinc.com and tell him I suggested he may want to help you. If they can't do it, at least they weill be able to tell you right away and to give you options.

I would suggest going with a direct lender (everyone will tell you they are a direct lender)... they have to be a Mortgage Banker and have underwriting and processin in house and write the loans under their name. you need to verify this.

If is a large law suit, it will probably be difficult.. if is a minor matter then it would probably be fine.

Good luck

Ron Escobar, MBA
Broker & General Contractor
0 votes Thank Flag Link Thu Mar 7, 2013
I can do those loans, no problem. If I can be of assistance, please feel free to give me a call or email.

Michael Abram
RPM | Los Angeles
Cell: (310) 995-0975
mabram@rpm-mtg.com
http://www.rpm-mtg.com/mabram
0 votes Thank Flag Link Wed Mar 6, 2013
If that is the only issue, then I can assist you with that.
Web Reference: http://WeFixRates.Com
0 votes Thank Flag Link Wed Mar 6, 2013
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