Sometimes, litigation might last a few months, and sadly, litigation can last for years on a condo project. Are you looking to purchase or refinance? If you are trying to refinance, you might try calling your existing lender to see if they will do a streamline refinance. If you are trying to purchase, depending on the litigation, putting 20% down may still allow you to purchase in that project.
Find out what the litigation is all about, and often, if the insurance company has more than enough insurance coverage even if they loose the litigation, you have a good chance.