San Diego Lenders are playing rough on San Diego Condo buyers, the leading two factors by which a loan provider may decline to finance a condominium are litigation and minimal owner occupancy levels ( Below 50%). This applies to conventional loans and the popular FHA mortgages.
Condo Litigation usually means the HOA (Home Owners Association) of the building or condo complex has filed a "Defect Lawsuit". The lawsuit is generally brought against the developer usually within the first 10 year 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 inside the San Diego Condominium project or building fall as a result of the lack of certified Home-Buyers who have not the means to pay cash and cannot get financing. It is not unusual to see Investors paying cash coming in and getting unbelievable deals on and litigated Condos.
Most if not all Lenders require a document called the Condo Certificate, a document that states information about the status of the condominium building. This is the document the lenders will look at to establish the current status of any litigation, owner occupancy and other issues that may cause concern to the Lender.
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.
Condo Litigation usually means the HOA (Home Owners Association) of the building or condo complex has filed a "Defect Lawsuit". The lawsuit is generally brought against the developer usually within the first 10 year 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 inside the San Diego Condominium project or building fall as a result of the lack of certified Home-Buyers who have not the means to pay cash and cannot get financing. It is not unusual to see Investors paying cash coming in and getting unbelievable deals on and litigated Condos.
Most if not all Lenders require a document called the Condo Certificate, a document that states information about the status of the condominium building. This is the document the lenders will look at to establish the current status of any litigation, owner occupancy and other issues that may cause concern to the Lender.
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 recognized expert in San Diego condominiums for sale. Learn all about San Diego condominiums at San Diego condominiums or visiting my website San Diego condominiums And Homes
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