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Finance Condo Under litigation

Posted on: 26th Aug, 2009 09:13 pm
Hi everyone,
I'm looking to finance a condo under litigation. Willing to put 20% down. Great credit, but can't find a lender. Condo is in great shape but not FHA approved. Is there any lender that would take this?
Hi kaustubh,

It is best to stay away from a property under litigation. At times, the litigation could be not-so-serious, but at other times it could be very serious. It is difficult to finance condos in litigation as most of the lenders would not want to lend you money against such properties. Thus, I think you should look for some other condominium units which do not have the stigma of litigation attached to them.
Posted on: 27th Aug, 2009 01:13 am
i think every lender with sense will steer away from such a property.
Posted on: 27th Aug, 2009 06:30 am
The condo is in litigation--as the plaintiff or the defendant?

If as the defendant, better look for a different property.

If as the plaintiff--keep shopping for a lender. Unfortunately, many lenders will not do it even in that case. However, shop yourself or work with a broker to do the leg work for you.
Posted on: 27th Aug, 2009 11:35 am
the HOA is a plaintiff
Posted on: 27th Aug, 2009 06:20 pm
i suppose that the next question is to figure out who is being sued...if it's a homeowner, that's not surprising, since homeowners often neglect to pay their condo fees on time, if at all.
Posted on: 28th Aug, 2009 09:46 am
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