Legal Question in Real Estate Law in California

How much does the lawsuit seek, for what, and is there a lis pendens on file? If the suit is small and does not affect title, it would have a lesser impact. I think in today's cautious lending environment, problems of any kind will have a chilling impact and take some lenders out of the game and make others give less generous terms (higher equity requirements, higher rate). The only way to know for sure is to apply.

Lenders are concerned about the security for their loans. A lawsuit that does not affect title to the property is not going to be of interest to a lender, especially if it involves petty squabbling over the board of a HOA.

A lender would be more concerned with construction defect litigation, or something that involves legal title to one or more of the units, or even toxic contamination to the property.