Non warrantable condo
Looking for advice. Trying to find any kind of financing for a condo that has an HOA with 3 issues:
1) law suit: they state the law suit is complete and final documents have been sent to the county.
2) reserves: reserves are not to standard but they claim they have completed a reserve study
3) roof insurance is currently on depreciation value, and will be converted back to 100% when the new roof is complete.
Mind you a conventional loan just closed in June, and I tried to use the same lender. We disclosed the roof insurance issue and at that point underwriting would not approve. Apparently they made a mistake on the roof insurance.
thanks in advance
#1 All Forums Contributor
- Investor
- Virginia
Quote from @Timothy Sorrentino:
Looking for advice. Trying to find any kind of financing for a condo that has an HOA with 3 issues:
1) law suit: they state the law suit is complete and final documents have been sent to the county.
2) reserves: reserves are not to standard but they claim they have completed a reserve study
3) roof insurance is currently on depreciation value, and will be converted back to 100% when the new roof is complete.
Mind you a conventional loan just closed in June, and I tried to use the same lender. We disclosed the roof insurance issue and at that point underwriting would not approve. Apparently they made a mistake on the roof insurance.
thanks in advance
Most likely you will not get financing for this because the risk is so significant. If a property cannot get financed like this that should be a warning sign to someone looking to buy it. Condo issues never get better, they continue to uncover more and more sins and the costs continue to escalate. My advice - stay far away
