Home Buyer, Playa del Rey, CA
Just an update on the situation... situation is resolved and we are set to close July 1 or 2 (delayed from June 30, but I'm not complaining because at least we are closing). We took a number of steps to get additional information: contacted the HOA management firm, got the contact info for the attorneys for the HOA, got more information from the attorneys and got the HOA's insurance company's contact info. In the end what was most helpful was this: we had the insurance agent for the HOA draft a statement of opinion regarding the suit (legitimacy; if current coverage would be sufficient for the claim; etc.) and this was then submitted to the FHA underwriter. Because the claim would be completely covered by insurance if the outcome is that the HOA is found to be responsible (and apparently the total financial impact was considered low), we were given an allowance for a spot approval. So it looks like we'll have a new home in a few days. After speaking with the seller directly we've come to find she had no idea this was going on and she didn't understand that she should have been disclosing it. I get the impression her agent likely told her it was her responsibility to either know or find these things out for purposes of disclosure, but she still doesn't have a firm grasp of why this had any impact on the sale at all. Very, very nice woman, but very overwhelmed by a difficult sales process.