Do banks lend on a property with 30 HPD violations
Started by Argo123
almost 13 years ago
Posts: 44
Member since: Jan 2013
Discussion about
Has anyone been able to obtain a mortgage on a property with 30 open HPD violations? If so, how did the bank deal with the issue; did they put any funds in escrow? Any other ways they deal with such situations?
Depends on the number of units, type of violation, the Bank in question, the leverage amount, the Borrower's credentials and finally the interest rate being quoted. These kinds of deals get done all the time, although the Banks are more cautious then ever. Over 2 or 3 violations per unit will certainly raise an alarm. They may ask for an undertaking from the owner to fix the violations, they may ask for escrow, they may ask for executed contracts w/ contractors & paid deposits prior to closing, they may ask for nothing. I would certainly disclose this fact prior to signing a commitment or payment a commitment fee and have an idea of how the Bank will handle this issue. Each Bank is different and the bank that is the best fit for your property needs to be found.