Refinance blocked by HOA Litigation. Suggestion?

WoodbridgeFin

New member
My condo refinance was blocked by HOA litigation, everything was fine until this step.

I am new to this. I don't even know whether it makes sense because litigations tie to master association(parks and lakes), not maintenance/sub association (managing condos and public areas around condos). And litigations are related to parks, not about the properties/building at all.

Any suggestions?
 
Ask a manager at your current lender to intervene. Master HOA issues should not impact your transaction.

If the litigation is regarding amenities ONLY within your condo community, it can stop your loan even if it's not tied to construction issues. Example: If drainage from the landscaping seeps towards the units, the resulting damage is the condo owners obligation to repair. The Builders should redo the landscaping but few will ever want to unless forced to through litigation. It's a risk to the lender to finance in a litigious community. That said, if this is 100 percent tied to the Master HOA, the lender needs to proceed as is. Hopefully they will see it that way.

Depending on your locked rate you could dump Lender A and relock with Lender B with a credit to take care of your appraisal cost (if any cost was incurred)

My .02c
 
Thank you sir!

Lender was referring two pending litigation cases from master HOA fact sheet, both cases are out side of my condo community. One of the case already pending for almost two years. If master HOA litigation impacts lender decision, it would affect 10k homes sales/refin for two years.

I will chat with lender tomorrow see what they come back with.

Thanks again. 
 
My lenders typically aren't too strict about HOA litigations. I would suggest the same, ask for a senior UW or someone to review.
 
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