Any lenders for condos with HOA litigation?

7 Replies

Hello,

I recently purchased a condo with cash and am looking for a lender for Sacramento area. HOA is in litigation with the builder for the common area.

Thank you. 

Why would you buy in HOA?

Joe Gore

i bought the condo w hoa litigation bc i was able to get it cheaper. I am ok with current loans but would like to convert to a 30 yr mortgage and invest in others. 

Hi Ethan,

There's a way to get around it. Instead of doing a cash-out refinance, go to a bank and ask for a HELOC on the condo. A HELOC is being treated like a credit card so the bank will not do a condo cert. Without the condo cert, the lender will not know the complex is in litigation. Interest rates on the HELOC are around 4%. I was able to do this for 3 of my condos. Works like a charm. 70% LTV on investment property. 80% LTV on primary.

Good luck.  

It's going to be tough finding one.. Were you able to get title insurance on the property?

Originally posted by @Minh L.:

Hi Ethan,

There's a way to get around it. Instead of doing a cash-out refinance, go to a bank and ask for a HELOC on the condo. A HELOC is being treated like a credit card so the bank will not do a condo cert. Without the condo cert, the lender will not know the complex is in litigation. Interest rates on the HELOC are around 4%. I was able to do this for 3 of my condos. Works like a charm. 70% LTV on investment property. 80% LTV on primary.

Good luck.  

 thank you for the information. minh 

 i havent tried to get title insurance yet. 

Ethan,

Keep it simple. Walk into a bank. Tell them you have a free and clear property. You want to get a HELOC on it. They will tell you what they need. You bring in the required docs, and they will give you a loan. It's totally free. Let the lender worry about the title insurance. It's their collateral. They will do what needed to protect their collateral.

Good luck. 

cool thank you