Lawsuit during Refinance Process

[Krish Roopchand]

I am a current customer with Flagstar Bank and I am applying to refinance my primary residence.

My FICO mortgage scores are 632 , 623, 590. My original purchase price was $530k and my current loan amount is $100k.

I am looking to do a cash out refinance and increase my loan amount to $152k. My debt to income is about 36% and LTV is fairly low as well.

The caveat is that my neighbor and I have had a disagreement about a fence I put up because he believes they are not allowed and has filed a lawsuit in Chancery court . He is not seeking monetary damages other than a claim for attorneys fees which he is not entitled to given that we are a state that follows the American rule ( each side pays their own way ) . My lawyer is paid for through a pre paid legal plan through work and hence I do not have any such costs either.

Could you please help me understand if at a bank like Flagstar my refinance would be possible ? Especially if I am with the same bank for my current loan ? Or are there rules barring me from closing the deal till judgement is passed?

Thank you so much ! I really appreciate it.