Legal Question in Real Estate Law in Florida

Can a lending institution make loans on a multi-family property while there is an ongoing issue which is available and discoverable by the underwriter then refuse or question another loan based on this ongoing issue that the lending institution claims to have just realized? The issue in question is not really an issue at all. The developer of the property in question paid to have the windows fixed which were not installed properly, a potential structural issue, then added the HOA as a third party litigant against the window installer to recover their expenses for the already performed window repair; hence, there is no structural issue because the windows were repaired. Therefore it seems discriminatory to question and delay a potential loan on criteria that was previously discoverable and, in reality, not the issue (structural to the building) the lending institution is trying to imply.

Your counsel in this matter is greatly appreciated.

Adam


Asked on 12/09/10, 7:15 am

1 Answer from Attorneys
Shelly Schellenberg MI & FL private practice

Lenders are not obligated to make loans that do not meet their criteria. Discriminatory? Unless the borrower is being discriminated against, due to a protected status (race, religion, etc) there is no discrimination. If the lender entered into a contract, promising financing, and then negligently, or intentionally defrauded the borrower, causing damages, then you may have grounds for a complaint. It sounds like the lender doesn't want to get its money involved in a property with ongoing litigation.

Read more
Answered on 12/14/10, 7:38 am


Related Questions & Answers

More Real Estate and Real Property questions and answers in Florida