This is pretty common for HOA's to sue the builder before the 10-year building code expires.
Based on what you have written, there is no active litigation, as your attorney does not have a lawsuit against the builder.
Also, since the HOA has a list of preferred lenders, selling the home and obtaining financing by the buyer will not be an issue. I also have other lenders who can do financing if it becomes an issue, as a fall-back measure.
I can work with you on these, as I am familiar with these.
Thanks & Regards,
We've sold many condos that have been in similar situations. Brian brings up a very good point, however, that rings true in our experience as well. If there is a perceived difficulty in selling a home and there are limitations on the types of buyers who can buy it (all cash, minimum 30% down, etc.), then values drop. We'd need to sit down with you and go through the HOA agreement to make a final determination. It's good there is a list of lenders already. You'd also want to make sure your home was staged to the max and prepared to shine like a model home. People who love the way a home looks are often more highly motivated to go the extra mile to make the transaction go through.
There are a number of Lenders that offer financing for Non Warrantable Condos. This Financing is intended for Condos that cannot be Financed under Conventional Financing due to a range of issues, including HOA issues/litigation. BBVA Compass offers Financing for Non Warrantable Condos. These loans will require higher down payments, but the option is available and will at least give potential buyers Financing options. I hope this helps. Please feel free to reach out to me with any additional questions.
we have financing available condo with litigation program please contact us .
Mortgage Loan Manager
I have sold a few properties that were in litigation. I received multiple offers on most of them since the buyers understood that after the litigation is over, the prices would go up very fast. In one of the developments I sold, we received all cash offers and as soon as the litigation was over, properties in that development were selling for $100K more.
So, in other words if you can wait it out, it would be a better options since you will be able to get more than what you would get with the property in litigation. It is also good that the HOA has lined up some lenders which will be very helpful if you decide to sell now.
Please keep in mind that there are no guarantees that the HOA will win the lawsuit although most of the time they do. So if you don't want to take any risks and want to sell now, you should go for it.
If I can help, please let me know.
My seller was in a unique situation and was able to carry back financing. Lining up lenders early is important. If you can get the condo sold prior to it going into litigation you will be in a better situation in getting a favorable price. It you wait it can affect the value and time to sell.
The market timing is also important. Jan./Feb. should be a great time, however, whenever you are ready should be good.