Building in Litigation
What Happens When the Building is In Litigation
Hi, I am John Collins, San Diego Realtor, and I want to talk to you a little bit today about litigation and what it can mean for the purchase of a property. If a building is in litgation it means that there is a lawsuit going on, either between two owners, or between the HOA itself and another party.
What this means for the property, is that it can affect the lending for a purchase of the property, which of course is a big and important part of the transaction. If the lawsuit is currently in process, they are still in the thick of it and nothing has been resolved yet, typically this means that only loans with downpayments of 20% or more will be available. Ask your lender about this. They will have a alot of great information and there are plenty of lenders that specialize in lending in these situations. Just know, that typically more cash will need to come to the table if there is active litigation.
Now, if there is litigation, it's still going, but things have been largely resolved, that's when things can really come back to normal, but you need to be out in front of that ahead of time. Let the lender know. If they can verify that the suit is largely settled, then you can get back to down payments of 10% or 5%. Again, your lender will be a great resource. Also, you can always ask me, I work with lenders who specialize in this kind of transaction all the time.
John Collins
DRE# 01948188
888 Prospect St. Suite 140
La Jolla, CA 92037
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858.252.0200
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888 Prospect St. Suite 140 La Jolla CA 92037
Coldwell Banker Realty, CalBRE# 00616212
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