HOA Litigation
Opportunity for Real Estate Investors
Condominiums provide a great opportunity for real estate investors or people who simply want to enjoy condo living. People who purchase a condo to live in enjoy the amount of space and privacy of a condo while not having to worry about much property maintenance, Investors view them as a valuable commodity that, depending on the location, can provide great passive income as a vacation rental.
Due to the layout of a condominium complex, there are generally HOA rules that condo owners must adhere to. With that in mind, HOA litigation that is uncovered by a condo questionnaire can make it difficult to obtain a traditional mortgage, Fortunately, we provide alternative funding that can help ensure that you get the condo of your dreams
How Does Hoa Litigation Impact A purchase ?
Before a traditional mortgage institution approves a loan for a condo purchase, they will generally require you to fill out a condo questionnaire. This questionnaire, also referred to as a condo cert, is designed to ensure that the loan is a financially sound move for the lender. The section of the condo questionnaire that focuses on HOA litigation can be especially telling.
In some cases, if the condo is tied up in litigation, may be because of issues with the building, such as the HOA overstepping its bounds or not fulfilling its responsibilities. Additionally, the type of litigation in question can lead to major financial loss for the HOA and can jeopardize the future health of the association and the building itself.
HOAS rely or membership fees and other revenue streams to properly maintain each unit and the building as a whole. If the HOA is in the midst of paying lawyer’s fees and may facing financial loss due to damages owed, the overall future health of the building may be in jeopardy
What are my options ?
Mortgage lenders who simply examine the current HOA litigation of a condo simply don’t look at the big picture. While these lenders are simply following the procedures set forth by their supervisors, the fact remains that condos, including those that may be in the middle of HOA litigation, can provide great opportunities for the people interested in purchasing one.
Non-traditional lenders such as NonQMdirect.com aren’t concerned with the traditional cookie cutter process that has greatly limited the mortgage Industry over the last several years. Instead, our team of industry experts are willing to look at each loan application on its own and determine the overall viability of the loan. Our loan professionals understand that not every transaction looks perfect on paper. With that in mind, our qualifying process is different than many of our traditional counterparts.
If you’re interested in purchasing a condo, you may be better served by applying for a loan through NonQMdirect.com than going through your usual bank. Our team of professionals simply want to help you obtain the property that you want to own, even if it’s a condominium that’s currently tied up in litigation.
Contact us today for all of your condo purchasing needs
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