San Diego Lenders are making it tough on San Diego Condo Buyers, the top two reasons in which a lender may decline to finance a condominium are litigation and low owner occupancy levels (Below 50%). This applies to conventional loans as well as government
Condominium Litigation normally means the HOA (Home Owners Association) of the building or condo project has filed a Defect Lawsuit. The lawsuit is usually brought in opposition to the developer generally within the very first ten yr span of construction.
This litigation could pertain to defects in particular units, phases of the development and/or the common areas. It is during the time spam of the litigation process that Lenders will refuse to lend on the property.
Prices on San Diego Condominium projects or town homes generally fall as a result of the lack of qualified Home-buyers due to the litigation process. It is not unusual to see Investors paying cash taking advantage of the lower pricing and scooping up litigated town homes at a greatly reduced cost.
Most if not all Lenders require a document referred to as the Condo Certificate, a document that states data concerning the standing with the condominium building. This is the document the lenders will take a look at to establish the present status of any litigation, condo-owner occupancy along with other problems that may possibly cause concern towards the Loan company.
Depending on the type of litigation and areas of the complex involved, buying in a litigated complex can result in a very significant discount on market value. There are a few ways of getting around litigation such as paying cash, or paying a large down payment or even paying a higher interest rate.
Operating with an experience Realtor will keep you updated on which property is in litigation and which features a reduced owner occupancy rating saving you a lot of time and work within the purchasing process.
Condominium Litigation normally means the HOA (Home Owners Association) of the building or condo project has filed a Defect Lawsuit. The lawsuit is usually brought in opposition to the developer generally within the very first ten yr span of construction.
This litigation could pertain to defects in particular units, phases of the development and/or the common areas. It is during the time spam of the litigation process that Lenders will refuse to lend on the property.
Prices on San Diego Condominium projects or town homes generally fall as a result of the lack of qualified Home-buyers due to the litigation process. It is not unusual to see Investors paying cash taking advantage of the lower pricing and scooping up litigated town homes at a greatly reduced cost.
Most if not all Lenders require a document referred to as the Condo Certificate, a document that states data concerning the standing with the condominium building. This is the document the lenders will take a look at to establish the present status of any litigation, condo-owner occupancy along with other problems that may possibly cause concern towards the Loan company.
Depending on the type of litigation and areas of the complex involved, buying in a litigated complex can result in a very significant discount on market value. There are a few ways of getting around litigation such as paying cash, or paying a large down payment or even paying a higher interest rate.
Operating with an experience Realtor will keep you updated on which property is in litigation and which features a reduced owner occupancy rating saving you a lot of time and work within the purchasing process.
About the Author:
Steven Gluyas is a highly qualified on San Diego Condominiums for sale. Understand more about buying and selling San Diego condominiums by stopping by San Diego Condos or visiting San Diego Condos and Homes
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