Can I get a mortgage while in litigation with neighbors?

[sudman]

My question is as follows:

I am a current customer with Flagstar bank and I am applying to refinance my primary residence.

My FICO mortgage scores are 632 , 623, 590. My original purchase price was $530k and my current loan amount is $100k.

I am looking to do a cash out refinance and increase my loan amount to $152k. My debt to income is about 36% and LTV is fairly low as well.

The caveat is that my neighbor and I have had a disagreement about a fence I put up because he believes they are not allowed and has filed a lawsuit in Chancery court . He is not seeking monetary damages other than a claim for attorneys fees which he is not entitled to given that we are a state that follows the American rule ( each side pays their own way ) . My lawyer is paid for through a pre paid legal plan through work and hence I do not have any such costs either.

Could you please help me understand if at a bank like Flagstar my refinance would be possible ? Especially if I am with the same bank for my current loan ?

Or would I be disqualified from being able to refinance prior to a resolution ( which can take about 1 year)

Thank you so much ! I really appreciate it.

 

[Taxing Matters]

It's simply up to the lender. Very likely a dispute over a fence is not going to make much difference. Either the fence stays or it goes, but either way I don't see that affecting the value of the property all that much.

 

[sudman]

It's simply up to the lender. Very likely a dispute over a fence is not going to make much difference. Either the fence stays or it goes, but either way I don't see that affecting the value of the property all that much.

Thank you good sir for your feedback . Are you in the mortgage industry ? Do Fannie may or Freddie Mac guidelines disqualify me from a mortgage refinance ? This is what worries me most or if banks like Flagstar simply say no , even though they service my current loan already !

 

[HRZ]

Lenders can get fickle over trivial stuff ..got hung up in one loan over a railing to 3d floor ...do not disclose potential issues you are not required to disclose ..and while a suit against you for no money may seem like no red flag...lenders can get hung up on just about any flyspec ....be prepared

 

[sudman]

Lenders can get fickle over trivial stuff ..got hung up in one loan over a railing to 3d floor ...do not disclose potential issues you are not required to disclose ..and while a suit against you for no money may seem like no red flag...lenders can get hung up on just about any flyspec ....be prepared

Thank you ! It is part of the declarations document so it must be disclosed . I wonder if Flagstar Bank is flexible or if Fannie May guidelines prevent them from moving forward.

 

[HRZ]

SOmetimes it is easier to make a short sweet accurate disclosure that identifies its as on no exonomic consequent for reason a and b....and might be smarter to have your lawyer write it ...yes it's a bit self serving ...but easier to explain up front than later on after 3 mangers have red circled it . AS an aside many a lender is ranked or compensated on bringing in new business...while your amount is not large...the person at bank might be useful as to best wording for internal purposes ..if disclosure is required ..do not fail to disclose .

One of my local banks has up to a 99k line of credit with floating rate over prime that is actually very low , has almost no fees and almost no paperwork compared to a refinance...for the modest. amount you seek there may be simpler ways .......

 

[sudman]

SOmetimes it is easier to make a short sweet accurate disclosure that identifies its as on no exonomic consequent for reason a and b....and might be smarter to have your lawyer write it ...yes it's a bit self serving ...but easier to explain up front than later on after 3 mangers have red circled it . AS an aside many a lender is ranked or compensated on bringing in new business...while your amount is not large...the person at bank might be useful as to best wording for internal purposes ..if disclosure is required ..do not fail to disclose .

One of my local banks has up to a 99k line of credit with floating rate over prime that is actually very low , has almost no fees and almost no paperwork compared to a refinance...for the modest. amount you seek there may be simpler ways .......

Thank you ! I will certainly keep that in mind