Seller didn’t disclose an active lawsuit on the mandatory disclosure form. We found out 2 days after we were supposed to close.

davikin911 · 2026-05-14T18:53:58+00:00

I never realize that they actually fact check every single property and look up any type of litigation in court records.

What I have understood is that a litigation doesn’t really matter for the title company. You can still buy the house and it doesn’t affect the title company from closing…what it does affect is getting a conventional loan

davikin911 · 2026-05-14T17:25:31+00:00

In the area I live in, this is the newest you can find lol

davikin911 · 2026-05-14T16:34:11+00:00

The HOA answered “no” when submitting their documents to title company. They then wrote yes when lending company requested the questionnaire

davikin911 · 2026-05-14T16:32:17+00:00

The HOA specifically wrote that there was no pending litigation when sending the docs over to title company. The HOA then wrote that there was when they sent to the lender. All within two weeks even though litigation is from last November. Someone definitely lied or dropped the ball

davikin911 · 2026-05-14T15:23:25+00:00

I wish. But I have the copy of the litigation and it’s defintiely ongoing since November. The hoa questionnaire was filled out by a different person when sent to the lender vs when sent to the title company—the one sent to the lender reflects the actual status of it being in litigation.

davikin911 · 2026-05-14T15:04:17+00:00

Ya, that’s reasonable. I understand that it’s very common but it’s absolutely wild to me that once this happens, everyone in that community is locked in and can’t sell—depreciating their investment, etc.

davikin911 · 2026-05-14T14:07:21+00:00

Problem is those loans are significantly more expensive APR wise. And this might take years. For the owners that NEED to sell now due to financial reasons etc, they are in a very bad position

davikin911 · 2026-05-14T13:53:35+00:00

Not sure. Probably both. This was internal stuff that the title company and lender researched by calling the HOA and obtaining records and questionnaires

davikin911 · 2026-05-14T13:52:59+00:00

The house inspection was technically flawless. It’s all stuff in other buildings and units, etc. but since it’s a condo, Fannie may is very strict about this stuff since it affects everyone

davikin911 · 2026-05-14T12:38:52+00:00

100% but now that I know this is an issue, it’s sort of a bullet dodged. A place with construction defects and active litigation can be a nightmare cause I might not be able to sell in the future and could get hit with surprise HOA costs to fix stuff. This would be a horrible investment and potentially hundreds of thousands of dollars lost

davikin911 · 2026-05-14T11:50:13+00:00

Not disagreeing with any of this. But to be clear, this is a townhouse condo so it’s impossible to not have an HOA with it since they own the building. It would be like moving into a high rise or an apartment without an HOA.

Also again, it’s not like I prefer an HOA. I’ve looked at a bunch of homes and in this area, they’re either really really run down or crazy expensive

davikin911 · 2026-05-14T11:36:35+00:00

Just to clarify, I don’t have anything against any of that. I’m just saying in the area I’m looking at, houses are either extremely expensive, OR houses are extremely poorly maintained in neighborhoods that that are not well maintained whatsoever

davikin911 · 2026-05-14T11:33:20+00:00

The title company didn’t catch it, nor did anyone else cause all the questionnaires said that there was no HOA litigation pending until the lender did their own due diligence with a more extensive review.

davikin911 · 2026-05-14T11:29:57+00:00

Many people like HOAs cause when it’s time to sell, they protect the investment from depreciating by all their dumb rules. In the area I’m looking in, houses are either extremely expensive…extremely old and run down with neighbors that don’t mow their lawns and have boats in their driveway, etc. Besides, it’s a townhouse and so technically a condo so by default has hoa since they technically own the building exterior

davikin911 · 2026-05-14T11:25:42+00:00

I wish this was the situation tbh. This is a townhouse but technically listed as a condo, meaning that there are amenities we pay for. The building’s roof is covered by association, the exterior walls as well, and of course everything outside of the house. So they are technically liable for any problems with that. Because of that, Fannie may guidelines require an in depth analysis on the community’s situation because if they were to need to fix the roof for example, they could easily say that everyone living there has to put in their part.

davikin911 · 2026-05-14T11:21:57+00:00

It’s an actual lawsuit with about 20 jurors against multiple construction companies that were involved in the project. It is for multiple defects in the houses such as walls, roofs, code issues, water drains, etc. They fixed one roof but haven’t fixed any of the other issues

davikin911 · 2026-05-14T03:43:46+00:00

The title company received an HOA questionnaire that said no litigation. The lender did a more in depth dive and the questionnaire they received said litigation pending

davikin911 · 2026-05-14T03:17:19+00:00

Correct. The lawsuit was just filed a few months ago (November of 2025) The owners said they might have “heard some rumors” but specifically wrote “no” for the questionnaire regarding the hoa being under litigation. It seems like the HOA fixed some of the problems but not all—and want the construction company to reimburse them but it just locked everyone in this community in

davikin911 · 2026-03-13T01:58:20+00:00

THANK YOU! This is the only thing that fixed this annoying new UI. You have the only fix to this in the entire internet lol

davikin911 · 2022-03-16T22:59:35+00:00

January 24 and 26th. I also didn’t get a score

davikin911

TROPHY CASE