Your name saw this post on The ActiveRain Real Estate Network and thought it might be of interest to you. Please see the link below to review the post.

Financing a condo. that is in litigation
Hello all: I hope you're having a great day and have big weekend plans.
I wanted to share with you an experience I recently had. I recently was approached by a couple who wanted to buy a downtown Seattle condo. The condo. complex had sued the developer which made it more difficult. In fact, I couldn't do the loan for that reason. In the Seattle area, there are a number of newer projects where there is currently litigation.
Even though I couldn't do the loan doesn't mean there aren't loans for a unit that is part of a project involved in a lawsuit. The bank that could do the loan sells directly to Fannie Mae so they could avoid the investor overlays. A bank who directly services the loan may also be an option.
Although I was disappointed that I couldn't do the loan as my relationship with my borrowers was strong, I learned something. Here is what I suggest. One, find out if the complex currently is part of a lawsuit. This isn't a deal breaker but it means most mortgage companies won't touch it. Ignore anyone who says they can do it. In our case, we couldn't because of ... more

__________________________________________________
Are you on The Rain? Grow Your Network!