Like all the previous comments have stated, there is always major concerns when buying a condo in litigation. I have worked with a number of buyers who have purchased condos in litigation. MY CLIENTS HAVE ALL BEEN AWARE OF THE PITFALLS, CONCERNS, COMPLEX PROBLEMS. It is not something I would recommend to a first time buyer but more an experienced property buyer or investor.
Feel free to call or e-mail to discuss or for lenders names.
CA DRE #01869087
Silicon Valley Lofts & Condos
46 W. Julian Street, Suite 229
San Jose, CA 95110
Office: (408) 297-LOFT (5638)
Mobile: (408) 300-3184
You would be surprised how often I am contacted by people fighting to buy a property, trying to find a way to work around an issue. If you have trouble getting in, getting out is harder!!!
NMLS # 6395
Financing Kentucky One Home at a Time
Firstly, are you working with a Realtor?? If yes, then your Realtor can help you. If not, then please do get in touch with me and i can direct you to a Lender who has lent on a different property in Sj that had litigation on it....there are terms that need to be met though....
Let me know, Thanks,
Grace Morioka gave you an excellent response to your question.
There is a good reason that many lenders refuse to lend on condominiums with litigation. The risk of loss to both you and the lender can be very high.
As Claudia Gravelle pointed out you need more information with respect to the nature of the litigation.
I recommend that you ask the REALTOR that you have selected to represent your interests to get more information with respect to the litigation and the issues that are involved with this particular litigation.
Charles Butterfield MBA
Real Estate Broker/REALTOR
Cell Phone: (4080509-6218
Email Address: email@example.com
Litigation, of any kind, is always a red flag for lenders, and, frankly, it should be an equally big red flag for you, as a potential homeowner as well. Unless this is a lawsuit with the developer over potential structural issues, this situation occurs when there is either 1) contentious homeowners and problems collecting funds from owners (which also can mean deficits in the budget) and/or 2) an overly litigious Board of Directors, and that never bodes well for homeowners or the future of the community. Obviously, if you've found it difficult to find any lender willing to make a loan on the property, this is more than just a mere "spitting" contest between homeowners and Board members or Board members and developer, and the ramifications of the legal contest are enough to cause concern for the current and future value of the home.
Whatever the situation, why would you want to buy into a potential problem that could affect your home, your monthly assessments and your finances? Even if you could buy the home, would you really want to buy into a community where you could potentially not be able to resell the home until much later? If it's difficult to buy, then other buyers will have the same problems.
My opinion...start with a great community without problems.
Depending on your down payment, etc and a review of the litigation, you may be okay.
Need to know: your down payment
What the litigation is (how many units are effected by it)
firstname.lastname@example.org (located in Fremont)