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HOA lawsuit on our condo is coming up as we’re about to close

Here’s the situation: our HOA had a hail claim denied for some roof repairs by the insurer. The insurer eventually agreed that the hail damage was covered, now there’s a lawsuit basically saying the HOA wants more than what the insurer wants to pay out. A motion to compel appraisal was granted but the appraisal hasn’t been done.

We knew about this lawsuit and disclosed it properly, but it has only come up now, about a week from closing, for the buyer’s lender. I think the lender may misunderstand and think the lawsuit is about whether there will be coverage for the damage, not how much the payment will be.

I’ve been on my HOA board and a special assessment has never been discussed, because all the HOA wants is for the roof damage to get covered, whatever that costs. I plan to ask the lawyer to write a letter basically saying the lawsuit isn’t about whether coverage is offered for hail damage, but how much the claim will ultimately be. Will this be enough to satisfy the lender’s concerns? The lender has asked how much the damage is, but without the appraisal all we have is guesses, and again I think the lender wonders what will happen if it’s not covered, which isn’t in question.

Curious what y’all think; thanks in advance.

submitted by /u/Overuse_Injury
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source https://www.reddit.com/r/RealEstate/comments/1ku9sck/hoa_lawsuit_on_our_condo_is_coming_up_as_were/

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