Construction Litigation Condo Lender Now Available.

Posted by Danielle & David Contreras on Friday, February 4th, 2011 at 10:41am.

We have been seeing more and more properties in litigation. With these units being well below market rates for comparable condos there is always a flow of active online interest. We are always pushing people back due to the fact that properties like Sonora Condos in San Jose typically require all cash due to the impending HOA lawsuit. Now there is hope for buyers that don't have all the cash required to get in on these great deals. Today there are banks willing to loan on these Non-Warrantable Condos as the banks call them. Condos hard hit like the Brickyard Downtown San Jose Condos have been at times almost 50% below the current market cost due to the litigation issue that surrounds the complex.

Many new buildings along with some recently sold Condo Conversions are finding that the HOA (the actual owners of the building) decides to sue the developer before a time limit expires to have major repairs or sometimes minor repairs done to the buildings.

In San Jose alone there are about 10 complexes that are in this situation. Give us a call if you would like a list. Many have said, us included, that these require all cash offers only. I think it has to do with the fact that no banks will take a chance on an unsure outcome of the lawsuit but, we have found a lender that can now help buyers to get a loan for a property in this type of situation.

Introducing Patti Conn-Ostboe of Value Plus Mortgage out of Corona Del Mar, CA. Patti let me know that my post regarding purchasing on some of these great Deals in some of San Jose's newest condos no longer requires a 100% cash but instead only 25% cash. With a FICO score of 660 and a full time job you to can get in on some of these below market priced units. Yes there are additional requirements like the max of $417k allowed for a loan and it is a complex bigger than 10 units. Can't be a third home but a second home is O.K.

So when you have saved enough and are ready to make the next step give us a call and we can get you on your way to buying a new low cost condo.
Print

Leave a Comment